alifomi gional 3ility l:^. 3/f EVERY MAN HIS OWN broker: O R, A Guide to Exchange-Alley. IN WHICH The Nature of the feveral Funds, vulgarly called the Stocks, is clearly explained, and accurate Com- putations are formed of the Average Value of East India Stock for feveral Years, from the current Year. The Myilery and Iniquity of Stock- Jo being is laid before the Public, in a New and Impartial Light. The Method of Transferring Stock, and of Buying and felling the feveral Government Securities, without the Afliilance of a Broker, is made intelligible to the lueanefl Capacity ; and an Account is given of the Laws in force relative to Brokers, Clerks at the Bank, &c. With DireAions how to avoid the l.offfi that are frequently fuftained by the DellrucSlion of Bank Notes, India Bonds, &c. by Fire, and other Accidents. ALSO, An Hiflorlcal Account of the Origin, Progrefs, and prefent State cf Public Credit, of the National Debt, both Princip.^l and Interest, of Banking, and of the Sikkin'g-Fund ; with Advice to Adventurers in the State-Lctteries. To which is added, A SUPPLEMENT, containing Rules for forming a Judgment of the real Caufes of the Rife or Fall of the Stocks ; and feveral xifeful Tables. !^Lcl faciu7it leges, ubi fola pecunia regnat. The TENTH EDITION, confiderably Improved By THOMAS MORTIMER, Elq. Author of the Elements of Commerce, Politics, and Finances. LONDON Printed for G. G. J. and J. R o b i n s^o n, Pater-noller-Row. 1785. v;)\^>^ PRE C. E 'T^niE Author of tlils little : I. • A. nual, thinks he .cannot open his Preflice to a new edition inoreipro- perly, than by making his grateful acknowledgements for the univerfal, continued approbation it has met with, not only from his own countrymen, hut from the inhabitants of neigh- bouring kingdoms, w^hcre it has been tranflated into different languages. At liome, it has paPfed through Nine editions, and its character has been fo firmly eftablifhed, that it has been quoted by counfel at the bar^ in A 2 221SS43 iv PREFACE. cafes relative to the funds, and has been referred to, as an laiqueftion- able authority, by the brighteft lumi- nary of the law on the bench. Its general utility has been experi- enced, in the courfe of twenty^ three years, by all perfons interefted in the public funds, and it has been ac- knowledged even by many fenfible, candid Stock Brokers, menofun- blemiflied reputation, to be the fole clieck, publicly given, to the igno- minious pradices of the difhoneft part of the fraternity, who fubfift en- tirely on the knavifti tricks carried on in the flock-jobbing tranfadions of the Alley; which are amply expofed, and againft which the public are ftrongly cautioned in this treatife. The changes that have happened in the (late of the public funds : the dif- PREFACE. Y fcrent circumftances of the nation ; the fiu£luations of pubHc and private cre- dit : the mal-adminiftration of the great commercial concerns of the East In- dia Company, and diverfe other ad- ventitious events, have always given the author a fair opportunity to make confiderable alterations and improve- ments, in every new edition he has prefented to the public fince the year 1761, when the firft appeared: it was then only a rough flcetch, in which the outlines of a more finifned piece were given ; but, as it was natural to expe(3;, that the bare defign of expofing the iniquities of profefled Stock-jobbers would excite every invedive that ma- lice, avarice, and difappointment could fuggeft,it was very candidly fent forth into the world an anonymous publica- tion ; that its enemies might have the A 3 vi P R E F A C P:. field: open for reprifals, and be at li- berty fully to controvert the truth of every proportion contained in it, with- out expofing themfelves to difagree- able perfonal altercations with the au- thor (a circumftance which has dil- graced feme of our beft criticifms.) His fuccefs, how^ever, exceeded his moft fanguine hopes; no marks of dif- approbation or cenfure appeared, ei- ther publicly or privately ; but, on the contrary, feveral letters were inferted in the news-papers, and many others were received by the publifher, com- mending and encouraging the under- taking 3 corroborating fads which be- fore refted on his fingle evidence, and throwing new lights on the fubjed : this correipondence v;as thankfully ac- knowledged ; and fome of the letters were inferted in former editions, but 0. PREFACE. vii they are now laid a fide, left it fliauld be thought to favour more of ofteata- tion than utihty, to reprint them. The beft return the author can make to the pubhc for the fatisfadioa lie has had of feeing his performance fo generally circulated and fo univer- faily efleemed, is to render the pre- fent edition as perfedt as podible j and, in order to accomplifh this, he has fparcd no pains, having diligently attended to, and accurately noted the feveral variations that have occurred in the ftate of the public funds : the operations of government refpect- ing the national debt, and the admi- niftration of the public revenues, fince the year 1782, the date of the laft edition. But above all, he has had a watch- ful eye over the conduft of the affairi . A d. Tlii P R E F x\ C E. of the Eaft India Company, and he is forry to obferve, that, by the mal-ad- minlftration of them, his obfervations in every edition of this work, concern- ing the uncertainty of the premium on India Stock, have been fully verified. In the year 1766, the infatuation of thofe who gamed deeply, or were otherwife largely interefted in India Stock was fo great, that the author was expofed to the ridicule of a nu- merous company of refpedable gen- tlemen at a public dinner in the city, for aflerting, that India Stock would never rife to 500 per cent. So fan- guine indeed were many, that they warmly infifted it would rife to 1000, yet in 1769, he ventured to predld, in a new edition of his little piece, that from many caufes therein fpecified, the premium might fink very low in-^ 7 PREFACE. ix deed, if not totally fubfide ; though, from the favourable ftate of the com- pany's affairs delivered in at the bar of the houfe of Lords in 1767, the public had the greateft reafon to ima- gine, they would be able to fupport the large dividends, they then gave, for a great number of years, if not to increafe them confiderably : the event has juftified his apprehenfions, and feveral gentlemen have kindly ac- knowledged the benefit they derived from confulting him, and following his advice ; with pleafure, therefore, the fubjedt is refumed in the follow- ing flieets, and probable conje(Sures are formed, from the prefent ftate of the Company's affairs, as to the fu- ture value of their ftock for eight years to come. A 5 X P II E F A C E. Confiderable additions are made, in this edition, to the inflriKflions of the greateft utihty to thofe who frequently tranfaci bufinefs in the dif- ferent funds — rparticularly, a new chapter, containing an authentic flate of the National Debt, both Prin- cipal and Interest, brought up to the very moment that this part of our treatife went to prefs, and which has not been clearly flated to the pub- lie for feveial years back. A more ample difcuffion of that important fubjed, Public Credit, IS introduced, with obfervations rela- tive to bankers, occafioned by the con- fiderable failures in that branch of bufmefs, in the courfe of a few years. Some notice is likewife taken of the blow given to Private Credit, in PREFACE. xi the year 1772, occafioned, in a great meafure, by the imlverfahty of the infamous practice of Stock-jobbing. The (hameful imitation of the form, and even of the paper on which bank notes are printed (by private perfons, in order to make their own notes cur- rent) having been prevented by a new ad: of parliament, the remarks on that head, in former editions, which far- niihed the government with the hint for this neceffary regulation, are omit- ted in this ; and the author finds his reward, in the fervices he has rendered his country, upon this and other fimi- lar occafions, though unnoticed by adminiftration. After having thus briefly men- tioned the principal improvements made in the prefent edition, it may be neceffary to remind the reader, of Xll PREFACE. the original defign of " Every Man his own Broker." The fatal efFefls of ftock-jobbing were fo feverely felt, both by the com- munity and individuals, in the me- morable year 1720, that, from that period to the prefent time, our com- plaints on the fubjedt have never ceafed ; but it has been conftant matter of de- bate, by what means this deftrudive pradice could be totally fuppreffed ; and though the circumftances of the nation became fo critical, in propor- tion to the extenfion of its Public Credit, as to render it a delicate and difficult tafk to engage the legiflature to enad, or our miniflers to enforce the execution of laws for that purpofe; yet, through the intrepid and truly pa- triotic condud of the late Sir John Barnard, w^hofe memory ought to PREFACE. xiu beheld in the higheft veneration by the citizens of London for his long and faithful fervices in parliament, fome regulations propofed by him, were paffed into a law, in the year I734f under the title of " An adf for the bet- ter preventi?2g the ijjfarmus practice of Stock jobbing f by which the mojft pal- pable and glaring frauds then in vogue, were indeed fupprefled : the Bubbles burft, and the race horses of Ex- change-Alley,expired Vv^ith the date of that ad; but Bulls and Bears flill exift in full vigour. The rejeded part of Sir John Barnard's fcheme for the total extirpation of Stock-jobbers, was brought into parliament in the year 1773, with fome alterations, and was again thrown out by the houfe of lords y and fuch muft be the fate of all fchemes of the fame nature, in which public x'lv P p. E F A C E. regliters are propcfed to be kept, of thofe contrads in the funds made by the brokers with each oti-er, called time (hir'^ains. The juft apprehen lions that fach regulations would lay too great a rePcraint on the bufinefs of buy- ing and felling, impede the free cir- culation, or fhut the prefent open market for the funds, will always be an infurmountable objedion to them. It appears then to be a felf-evident propolition, that the difcouragement and final fappreflion of Stock-jobbing muft proceed from* the voluntary con- dud: of all perfons concerned in the public funds. They muft be una- nimous in their abhorrence of the pradice, and the only way to make them fo, is to convince them of the injury they fuftain in their reputation and property by gaming in the Alley, PREFACE. XV and thereby expofingthemfelves to be the dupes of Stock-jobbing Brokers and their employers. With this laudable view the fcenes of chicanery, duplicity, and fraud, ex- hibited at Jonathan's Coffee houfe, in Exchange Alley, the then ufual ren- dezvous of Stock-jobbers, were paint- ed, from the firft, in true and lively colours : in the prefent edition they are retouched ; and fome new^ in fiances of deceit are introduced. The fcene only is fmce changed, the brokers having built a room by fubfcription, oppofite the Bank, and called it the Stock- Exchange, in which they now af- femble to tranfacl their bufinefs. Any perfon- may enter as freely, as into any other Coffee houfe ; however, fix- pence muft be paid at the bar, by every one who does bufinefs. XVI PREFACE. But the grand objed of this work always was, and ftill is, to perfuade the proprietors of our public funds to tranfad: their own bufinefs ; to make them the managers of their own pro- perty ; the only efFedual method that can be taken to reduce the great num- ber of Stock-brokers ; to diminifli the extenfive operations of Stock-jobbing ; and^ in the end, to extirpate this in- famous pradice, which ruins many capital merchants and tradefmen, every year. The plainefl and mofl: ample inftrudions for buying, felling, and transferring the feveral funds at the refpedive offices is given in this con- venient pocket volume, with this view ; and the author has the fatif- fadion to know, that they have been fallowed with facility and fuccefs by an incredible number of merchants PREFACE. xvii and gentlemen: Indeed if this were not an inconteftable truth, it would be hard to account for the continual de- mand that has been made for a book, otherwife of little value, during fuch a length of time as twenty-three years ; or that another edition (hould now be required. The original defign of employing brokers muft certainly have been for the convenience of the ladies, for whofe fervice thefe gentlemen are al- ways ready; it were indeed to be vfidi* ed that moil of them had more favour- able afpeds, and a genteeler addrefs ; for really many an innocent young lady, who has butjuftheard of 'Change Alley, may reafonably conclude thefe are the identical Bulls and Bears (he has been told of : but the utility of thefe gentlemen may be eafily fupplied, xvlil PREFACE, even to the ladies, as it cannot be ima- gined any lady is fo deftitute of rela- tions and friends, as not to be able to find one gentleman, who would be fo obligi! g as to tranfadl her bufinefs for her in the funds, efpecially when it fliall appear, that it is the mioft iimple and eafy affau- in the whole circle of bufinefs, and attended with very little lofs of time. Nothing is fo common at prefent, as for executors of wills (when they hap- pen to be men of imderflanding) to transfer a legacy out of the name of the teftator into that of the legatee, without calling for the afliftance of a broker -, and why fhould not every gentleman, in the fame manner, give his affiflance to his fifler, his coufin, or any other fem.a.ie relation, or friend, when flie wants to lay out a fum of PREFACE. XIX money in the funds, or to fell a fiim out of them ? When not only the pradicabillty, butllkewife the facility, of rendering this fervlce to the ladies, fliall evidently appear from the rules laid down in the following pages, no gentleman will refufe to devote half an hour occalionally, to the agreeable employment of delivering the fair fex from all connections with this medley of barbers, bakers, butchers, Ihoe- makers, plaifterers, and taylors, whom the Mammon of unrighteoufnefs has transformed into Stock-brokers. If in confequence of a compliance with the propofed plan, thefe gentry fliould lofe the fair fex, their greateft fupport falls to the ground, fmce one of their principal emoluments arifes from the management of the fortunes of wo- men, whofe ignorance, joined to a 6 XX PREFACE. propenfity for gaming, (become of late years a female pafiion,) renders them the eafy dupes of Stock-jobbing brokers. It will likewife be fhewn in the courfe of this treatife, that it is almoft impofTible for a jobbing broker to give any gentleman candid and difinterefled advice, when to buy into, or fell out of the funds ; and if this is demon- ftrated to the fatisfaftion of the pub- lic, it will then follow, that, after having learned the method of tranf- a£ting bufmefs, and being difpofed to affift the fair fex, the gentleman and merchant will have no occafion for a ftock-broker ; nor will the public any longer be under a neceffity of giving to a low kind of fervants, an almoft abfolute power over all the circulating monied property in the nation, not PREFACE, xxi employed in trade : but though the author's end fhould not be completely anfwered, by accomplifhing the total fuppreffion of ftock-brokers, it is certain the information he has laid before the public, will put men upon their guard, and enable them to dif- tingulfh between the reputable broker, who purfues only the legal duties of his vocation, and thofe Jefuits of the Alley, who came into it mendicants, but have amafled princely fortunes, by plundering the innocent and un- wary, and have left in it fcyons of the fame flock, to continue the fame infa- mous pradices. In fine, for th€ reafons before fpe- cified, a diftin£t and clear account of all the arts of ftock-jobbing are given in the following pages, but not with any defign to make gentlemen turn XXll PREFACE.. jobbers; and therefore, though the learning the method of transferring at the books, is the high road to ftock- jobbing, it is hoped the fenfible reader, who may only want to lay out his own money, or his friend's, in the funds, or to fell out of them, as his various occafions may require, will be content with faving the brokerage, and will go no farther ; for though he will find every requifite inftruftion here for walking the Alley, yet, as there are every day fome new fcenes of iniquity contriving behind the curtain, it is impoflible for any man to infure fuc- cefs ; which is fcarce ever certain, till thofe troublefome companions, that generally attend the innocent, "jiz. honour, honefty, and a good cgnfcience, are entirely difcarded. EVERY MAN HIS OW N B R Q K E R. -CHAPTER L Explanation -pf the' Nature of the Public Funds ^ commonly Icalled'-the'.Stocks.-^DiJlinci Account' of India Stock,— Review of (he Admifilflration of the Eaft: India ^ Cotnpanf^ Affairs. — Account of the new Regulations of Parliament refpecling rthem. — Exact Lifls of the Variations in the Prices of India Stock for eight Tears pafl. — Deduction from thence^ of the Medium or Average Price of each Tear. — Joules for e/ri mating the medium ValuCy for eight Tears to come, l^c. THE national credit of Great Bri- tain having long fince arrived at the higheft degree of reputation, and her fecurities for the loan of money B 2 EVERY MAN being now efteemed the beft in Europe, not only by her own fubjecfls, but likewife by all unprejudiced foreigners; a full expla- nation of the nature of thefe fecurities de- fervedly merits the attention not only of the inhabitants of Great Britain, but of all foreigners, on whom Providence has beflowed any portion of wealth, that is not employed in commerce, or laid out in landed eflates : for where will they find fo fafe a repofitory for their money, and on Rich advantageous terms as the public funds of England afford ? Higher in- tcrell may indeed be obtained, but then the fecurity is not fo good. A company or fociety of merchants trad- ing to any part of the world may fuifer lofTes of various kinds, fo a's to leiTen the value of the principal fum advanced them, and to oblige them to lower their divi- dends ; while, on the other hand, private fecurities are ftlll more hazardous : from whence it ncceiTarily follows, that the go- vernment fecurities being the fafefl, are HIS OWN BROKER. 3 the moft advantageous to lay out mo* ney in. But for want of rightly underflanding thefe fecurities, great numbers of perfons, efpecially in the remote parts of the king- dom, lofe the opportunities of engaging in them, and often lend their money, to their great lofs and difappointment, on hazardous private fecurities. Befides the utility of being converfant in the nature of the funds, it will afford a fecret fatisfadlion to the public in general, to fee by whateafy methods a free govern- ment raifes the large (but necelTary) annual fupplies, for carrying on heavy and exten- five wars. In comparifon of thofe grievous and oppreffive meafures taken in defpotic governments, on the fame emergencies. Surely the bread of every Englifhman, pofiefTed of monied property, niuft glow with rapture and admiration, when he con- fiders, that while the unhappy fubjedts of the other powers engaged in the lafl war were quite exhaufted, and thoufands of B 2 4 EVERY MAN them totally ruined, owing to the den.ands made on them by their arbitrary monarchs, he voluntarily contributed towards defray- ing the public expences of his country, in a manner that was fo far from being burden- fome to him, with refpedt to the large principal fums wanted yearly, that, on the contrary, he ferved himfelf at the fame time, by lending his money on parlia- mentary fecurity. The fame ways and means being flill purfued, for ralfing the extraordinary fums wanted for paying off the remainder of the debts contradcd for carrying on the late extenfive war againft France, Spain, Hol- land, and the American revolted Colonies; the Biitifh fubjed, while he is contribut- ing his quota, by the taxes impofed upon him to pay the interefl of the principal fums borrowed by government ; if he is poffefled of monied property, and can make intercrt to fubUribe to the annual loans, actually repays himfelf, and is more ihsitifcot-freef by the profit he makes HIS OWN BROKER. 5 from lending his money to the public; every loan of late years having borne a confiderable premium^ or profit, to the fub- fcribers, when brought to market. The prefent government funds, trans- ferable at the Bank of England, are. Three per cent. Bank reduced annuities. Three per cent, confolidated ditto. Three per cent ditto, 1725. Four per cent, confolidated ditto. Four per cent ditto, 1777. Long annuities for 99 years from 1761. Ditto . . for 98 years from 1762. Short annuities for 10 years from 1777. Ditto . .for 30 years from 1778. Ditto . . for 29 years from 1779. Three per cent, fcrip. for 1784. Four per cent, ditto . ditto. Lottery tickets . • ditto. Long annuities . . ditto. New Navy and Vidualling bills Exchequer bills. B 3 6 EVERY MAN Transferable at the South Sea Houfe, Old South fea annuities. New ditto. Three per cent. • . 1751. Thefe are what bufinefs is daily tranfacfV- ing in, and the}^ are extracted from one of the printed liQs publifhed by a broker, which printed liils are to be had daily (about one o'clock in the afternoon) at any of the brokers ollices near the Exchange ; and at fomc of them, may be feen fluck up at the windows. I choofe to didinguilh the above from fome other funds that are in- ferted in thefe lifls, or printed in the pub- lic news-papers, under the general name of Stocks, that the public may be acquainted with the difference between the funds of public companies, and thofe of the go- vernment. The v;ord Stock, in its proper fignifica- tion, means, that capital in merchandife, or money, which a certain number of pro- prietors have agreed to make the founda- HIS OWN BROKER. 7 tion for carrying on an united commerce, to the equal intereft and advantage of each party concerned, in proportion to the fum or fhare contributed by each. A number of merchants uniting, and ap- plying to the government for an exclufive charter, to prevent others from engaging in the fame commerce, and for a power to raife money by an open fubfcription. In order to form their ftock, or capital, are genei'ally denominated Companies. A conjunction of three or four perfons, who jointly contribute different, or equal fums towards forming a general flock to trade with, is called a Copartnership ; but the fum of money, or the value of the merchandifes they begin trade v/ith, is (till properly called their Stock ; and fo is the capital, with which any (ingle man carries on his particular buiinefs. From this definition of the term, it fol- lows, that the application of it to the lift of government fecurities, here inferted, is highly improper, as they are abfolutely B4 8 EVERY MAN public debts, and not fiocks, for they are all aids granted by parliament to the go- vernment, to enable it to defray the public expcnces at fundry times, and on fundry occafions ; and have been borrowed of the public on the different conditions contained in the feveral adls of parliament by which they were raifed ; one of which conditions is, that they ihall be redeemable by par- liament, or, In other words, that the par- liament referve a power of paying ofFthefe fums borrowed of the public. However in all this, there is not the leaft fhadow of ftock or capital ; but what amply fupplies the place of It, National Credit, on the firength of which the national debt has been contracted ; and fo long as the go- vernment can keep this credit in reputa- tion, which it will always be able to do, while it can find ways and means of paying the annual interefl of this debt, in the fame pun(ftual manner that it is paid at prefent, fo long will national credit fupply the place of Itock to the government ; and HIS OWN BROKER. 9 will be a better fecurlty for money than a Ihare in the flock of any Company what- ever, for reafons which I fhall give in their proper place. The flock or capital of our Public Com- panies has been raifed by authority of par- liament ; and by the fame authority has been confined to a limited fum ; fo that as foon as the fum allowed to be railed was completed, the'number of proprietors was likewife afcertained and completed, and no perfon whatever could afterwards be ad- mitted on the fame footing ; but as every proprietor had a power referved to him, his heirs and executors, of transfering or afligning over his right in the faid ftock, to whom he thought proper — this laid the foundation of opening transfer-books, and of appointing particular days and hours for transfering, afTigning over, and accepting, or, in other words, for felling and buying of flock. Every original fhare of a trading com- pany's flock mufl greatly increafe in value^ B5 10 EVERY MAN in proportion to the advantages arlfingfrom the commerce they are engaged in ; fuch is the nature of trade, in general, that it cither confiderably increafes, or falls into decline; and nothing can be a greater proof of a company's trade being in a flourifhing condition, than when their credit is remark- ably good, and the original fhafe in their Hock will fell at a coniiderable premium. No commercial company, in any part of the habitable globe, ever poiTeiTed fuch lignal and extenfive rights, privileges, and advantages as thofe which have been allowed by government to the Britifh Eafl India Company, from their firft eflablilh-- ment to the prefent time. In a nation, renowned for its political freedom, fucceflive cxclufive charters have been granted to this company, by which they have been veiled with p:)v/ei s and pri- vileges, feemingly incompatible wirh the tirft principles of our conllitution.. For inftance, the territorial acquilitions they have made by cono^ucfi from, or by trea- HIS OWN BROKER, it ties with the Indian princes, have remain- ed in the Company's polTeffion, though they of right belong to the Crown ; and they have a power to prevent any of their fellow-fubjedts from going to and fettling in any part of their territories in Alia ; though every Englifh fubjedt has a con- ftitutional right to travel to, and fix his refidence in any part of the dominions of his Sovereign. Yet, while the public revenue of the kingdom continually receives large an- nual fupplies from the immenfe imports of this company, and likewife fuch loans, on extraordinary emergencies^ as aftonilh all Europe, governm.ent is mod afTuredly jufti* fied in conniving at a monopoly, which, though it infringes on the political rights and privileges of its fubjedls, as indivi- duals, contributes fo largely to the real; and relative riches of the nation ;. by aug- menting its capital ftock in merchandife ; by replenifhing its public treafury ; and by confuming its manufactures. B 6 12 EVERY MAN But^ at different periods, this profperous {late of their affairs has been reverfed, and inftead of contributing either to the gene- ral commercial interefts of Great Britain, or to the increafe of her finances, the com- pany, in their turn, in the year 1773, re- quired the loan of a very large fum, no Jefs than Ij4oo,ooo/. to be drawn from the public treafure of the nation, for the fupport of their decUning credit ; and alfo found themfelves reduced to the neceflity of refiridting their commercial operations, and of confining them for the future within narrower limits. It then became elfentially neceffary for parliament to in- terpofe, in order to put a flop to the manifold abufes of the extenfive powers veiled in the company by their charter; and to prevent thofe infamous exertions of unlimited authority, ufurpingly prac- tifed by their haughty fervanrs abroad, in open defiance of the mofl pofitive iwftruc- tions fcnt from homc^ by the diredors. HIS OWN BROKER. i^ It was matter of allonifhment and con- cern to the public, to fee individuals, who had been employed but a few years in the company's fervice in Afia, return home with immenfe fortunes, and wallow in wealth and luxury ; while the affairs of the com- pany were declining, notwithftanding the great profits they derived from an extenflve, exclufive trade, and from the revenues of newly-acquired extenfive territories. Such a flrangc fituation of their affairs could not efcape the vigilance of the Britifh legifla- ture. Accordingly, a feledl committee of the Houfe of Commons began an enquiry into the flate of the company's affairs, and into the management of them for fome years pafl, both at home and abroad. From the reports of that committee to the houfe, it appeared, that the mifmanagement of the directors at home, and of the company^s fervants in India, whofe avarice was infati- able, had been the caufe of reducing their affairs nearly to a (late of bankruptcy; for, without the aid of parliament, the diredors 14 EVERY MAN had not refources to anfwer the demands upon the company. An adt of parliament was therefore palled in the feffion of 17 73, for eftablifliing certain regulations for the better management of the affairs of theEafl- India company ; in confequence of thefe regulations, a governor-general, aflifled by four perfons^hiscounfellors, was appointed, and veiled with all the powers, military and civil, of the prefidency of Fort Wil- liam, in Bengal ; alfo with the ordering, management, and government of all the territCTrial acquifitions and revenues in the kingdoms of Bengal, Bahir^ and Ortjfai with afuperintending and controlling power over the prefidencies of Madras, Bombay^ and Bencoolen ; and a fupreme power of making war and peace, &c. A fupreme court of judicature was likewife eftabliihed for the town of Calcutta, and the factory at Fort William, and the limits thereof, and factories fubordinate thereto. It was hoped thefe new regulations would be a check upon the peculations of HIS OWN BROKER. 15 the company's fubordinate fervants in In- dia, and reftore the credit and profpe- rity of the company; but, in the year 17S1, complaints arrived of the oppreflive cxer- cife of the authority of the fupreme court of juilice, though the judges were ap- pointed by the King ; the inhabitants fubjedl to their jurifdidiion, as well native as Britifh, petitioning parliament againfl their conduct. By mifmanagement likewife of the go- vernor-general and fupreme council at Fori: William, or the wilful difobedience of the fubordinate prefidencies, the company was drawn into a dangerous war with the Ma- rattas, the mofl pov/erful ftates of India^. and with the late Hyder Ally, a potent and warlike prince, v/ho defeated a con- fiderable force belonging to the company ; and in confequence of this and other dif- afters, a fecret committee of the Houfe of Comm.ons was appointed,, in the feflioii of the year 178 1, which continued fitting in 1782 and 17B3, to enquire into the 6 i6 EVERY MAN true caufe of that war, and into the aftual ftate of the company's affairs. The re- ports from that committee have been publifhed ; and it was hoped fome capi- tal delinquents would have been called to account : however, after various well- known debates and contells in parliament, the total refult of the enquiry has been the pafling an adt in the prefent year, 1784, entitled, an aB for the better regu- latlon and management of the affairs of the Eqjl India Company y and of the Britijh pof- feffions in India ; and for ejlahlijljing a court of judicature for the more fpeedy and effe5fual ■ trial ofperfons accnfcd of offences committed in the Eajl Indies. By this adt, government has fubjeded the diredlon of the Eafl India company's affairs at home, and their fervants abroad, to fuch a controul- ing power veiled in the hands of the minillry for the time being, and of the king in council, that it is almoft morally impoflibk for the directors to be guilty of fuch fhameful mifmanagement as here- HIS OWN BROKER. 17 tofore, or for their fervants in India to enrich themfelves at the expence of the company, and of the Indian princes. At the fame time, another adt was palTed, for the relief of the company, with refpedt to the flate of their cafh account; by which the debts they owe to government, for cuilom-houfe duties and other de- mands, are poftponed ; and time is granted to them to difcharge the bills of exchange drawn upon them from their fettlements abroad, which were either adlually due, or to become due in a Ihort time. This indulgence extends to the year 1790, before which time, if the peace continues in India and in Europe, it is imagined the company will have dif- charged all pecuniary demands upon them, at home and abroad, and will have fuch a balance in hand, as to enable them to con- tinue, if not to increafe, their prefent dividend of eight per cent. But, that the true defign of giving this detail of the company's affairs may be i8 EVERY MAN completed — which is, to advife and guide the nionied man In his tranfadlions with refpedl to the funds of this company, in order to prevent his being allured by falfe appearances and falfe hopes to game deeply in them, or to purchafe at very high premiums ; it will be neceflary to go back to the year 1766, when fuch was the fpirit of jobbing in India flock, that fome brokers in the alley, and other inte- refted perfons out of it, propagated a report, foon after the news arrived of Lord Clive's fuccefs in India, that the company would be able, from their prodi- gious profits, to divide ^o per cent, per art' numy in confequence of which India ftock rofe to 263, in the beginning of May, 1767 ; the general court declaring a divi- dend on the 6th of May of (i\per cent, for the half year commencing at Midfummer, and ending at Chriftmas, 1767. No limi- tation being at that time fixed to their di- vidends, it is impofhble to fay to what height this madnefs might have run;, if HIS OWN BROKER. 19 parliament had not wifely interfered to prevent it, by an ad obliging the diredors of the company to refcind the vote of the 6th of May, and to limit their annual dividends to 10 per cent. But for this event, u^e ihould have had a revival of the calamitiesof the South-Sea bubble in 1720. For fuch was the infatuation pre- vious to the interpofition of parliament, that the author of this book was ridiculed in public company for aflerting that India ftock would never rife to 300 ; the gen- tlemen contending, that it would be worth and rife to 8 or 900, if not 1000/. We have already noticed what pafled in parliament in 1773. In 1774, the eighth edition of this work was publiihed, and feveral accounts having been tranfmitted to the author through the hands of his publilher, demonflrating that very deep gaming was flill carrying on in India flock, to the ruin of the unwary, he thought he could not perform a more acceptable fer- vice to the public than by inferting in his 20 EVERY MAN next edition Lifts of the variations in the prices of India flock during the eight preceding years, which included the pe- riods of the greatell revolutions in the af- fairs of the company— fpccifying the va- riations in each year, and the medium or average price in each year. — Alfo a deduc- tion from thefe tables, and the fituation of the company's affairs in 1774, of the pro- bable medium price for the enfuing eight years. The period of that calculation ex- pired on the I it of January, 1 7 8 1 . It is there- fore unnecefTary to reprint that calculation, or the lifts inferted in the lad edition ; but, in order to fhew what prodigious fums muft have been won and loft by jobbing in India ftock, between the years 1766 and 1773, inclufive, the following note is preferved. iV. B, Extreme variation in the price of Eaft India ftock, in the courfe of eight years, I'l^Z per cent. — being the difference between the higheft price, vt%. 278, in June, 1 768, and the loweft price, viz. 140^ in December, 1773. HIS OWN BROKER, zi The probable medium price, fortold in the laft edition, for the eight fucceeding years, from 1774 to 178 1, inclufive, was 160, and an allowance was made of 10 per cent, on the fuppofition that the com- pany's affairs would-be in a profperous flate during that period ; if, therefore, we dedudt 10 per cent, for the late unto- ward circumftances in India, we reduce the price to 150; and it will be found, by the lifls of the adlual prices at market, inferted in the ninth or lafl edition, that the author's anticipated calculation was a very jufl: one. It appeared likewife by thofe lifts, that the extreme variation in the price of India ftock, during the courfe of thofe eight years, was ^o per cent, the higheft price, in December, 1776, being 171; and the loweft in July, 1778, being 131, The medium price between thefe extremes was 150, the average price for the whole time. 22 EVERY MAN Let us now pafs in review the prices for the lafl eight years, including the current year 1 7^4. 1777. February 17, - - - 169 July 29, - - - . ,57 Augult 27, - ... i5i September 15, - - - 165 IS'ovember 13, - - - i<^7t December 20, - - . 1647 Variations this year, 12 per cent. Aver- age price 163. 1778. January i5, - - - 151-J February 17, - - - - 147 21, - - - - i57r 26, - - - 145J March 27, - - - - 130 April 30, - - - - 128^ May 27, - - - - 1347 June 23, - .- - - - 136-;- July 23, - - - - 131 Augult 22, - - - 138^ Odtober 8, - - - - 146; November 26, - - - 141 December 23, - - - 138J Variations this year, 7']iper cent* Aver- age price 1434. HIS OWN BROKER. 23 N. B. When any months of the year are omitted, it is becaufe little or no va- riation has happened in them, from the prices of the preceding month. » 137^ February 18, - - - - 143 25, - - " - - i38i March 4, - - - . i^I^ 27, - . . - 1314 April 22, - - - - I55f ^i^y 27> i5it J^^e i7» i43r J'jiy 15' 138 September 11, - - - i&^o\ October 14, - - - i43i November 25, - — - 145I. December 15, - - - 143 r Variations this Year, iV^percent* Aver- age price 146^-. 1780. January 13, - - - 14 if February 2, - - - 151 29^ - - - i53i 24 EVERY MAN April 22, - . - 15^4 June 6, - - - 150 July 12, ... . 148 1- Augufl 3, - - . . 152 October 26, 153^ Variations this year, 15^ per cent. Aver- age price 149I. 1781. January 24, - - - 153;- February 23, - - - 146J April 12, - - - - 148 19, - - - - i44i- May 10, . - - - 147^ 23> 145 July 12, - - - - i40t 18, . - - - 135 21, - ... 133J Auguft 28, - - - - 140 September 18, - - - 138 October 9, - - - - 139 27, - - - - i34t November 15, - - - - i39t 24, - - - 134^ 27, - - - lAoi Variations this year, 197/^^ cent. Aver- age price 143* HIS OWN BROKER. 25 1782. January 25,^ February id, March 15, - - - ? i35t i3it April 17, July 10, - - - • 139 132 20, - - - - - 127-5- September 12, - 126% 16, - - - October 16, - - - km 1307 24, November 11, "• I33t 131^- December 3, - - - - •1361- 9> - i39# 31, - 141 Variations this year i^f per cent. Aver- age price 133. 1783- January 8, - - - i33t 23, ... February 15;, March 21, - 144-r I46t 140^ April 8, . - - - 137 19. - - * • 132^ 29, ... May 16, - . - . 141 23> - . - • 14© i6 EVERY MAN July II, . . Auguft 23, ... Seprember 9, - - November 14, - 132 143 137^ 21, December 18, * 120 127 Variations this year 264- per cent. Aver- age price 133^- 1784. January 12, - 118^ February 25, - 123 March II, - I29t 23, - I24t- 27> - 126 May 13, - ^ . - 1227 26, - I241- June 8, - - - - I2li- II, - - - iiSt 17, . - - - - 12oi. 25, - - - - 122 July 14, - I17r 23, - - - - I2lt Auguft 5, - - - - 1261 Odober 13, - - - 128 Variations this year 9!- per cent. Ave- age price 123;. HIS OWN BROKER. 17 Let it here be remarked, that gaming in this Stock has not been fo exccffive, during the lail eight years, as in former periods ; and it is highly probable that the publica- tion of the tables in the two laft editions, which pointed out the great danger of ruin by jobbing in a Fund, the price of which had varied in one year, no lefs than 1 38 per cent, checked the progrefs of fuch pernicious gambling. However, it ihould be remembered, that even in the laft eight years, clofing with the pre- fent year, jobbing in India Stock muft have been a deeper game than jobbing in any other, the variation in it being ^o\ per cent, the difference between the highell price in Februar}^, 1777, \\z. 169; and the lowefl price, iiSf, in January, 178^. Having now found the average or me- dium price of India flock for fo long a pe- riod as the laft eight years to be J 43-, let us endeavour, from juft reafoning, to point out the probable, real value of this C 2 23 EVERY AI A N i\ock for eight years to come, including the current year 1784. And the better to juftify our conjectures concerning future times, let us make a few obfervations on the pafh and prefent flate of the com- pany's affairs* It is generally allowed, that during the peace of 1763 the company enjoyed every advantage that could poffibly accrue to any trading company — fuch as an exclu- iive right of conducting all their concerns at home and abroad, by th^ir own b}'e- laws — an unbounded, perhaps a culpable demand for all the commodities brought home by their fhips — an increafed demand for re-exportation to other countries — new territories, and with them additional re- venues : frefh fources of commerce — and an unlimited credit at home, carried to a degree, at one time,bordering on the South Sea infatuation, to which the madncfs of the public might have made it parallel, if parliament had not put a check to the fmif- terdefignsof certaindiredtors and interefted 5 HIS OWN BROKER. 2^ proprietors. What could the Company vvifh for, as an addition to thefe advan- tages ? — Nothing, but public virtue and" dllintereftedners in the managers of their concerns at home; and common honefty, tindured with humanity, in their fervants abroad — but both thefe neceilary fupports failing them, the fuperflrudure has nearly fallen to the ground, and all the hopes of vaft dividends and prodigious prem.iums have fuddenly vanifhed, to the great dif- appointment of tho-fe who purchafed the ftock at enormous premiums^ particularly in the year 1766. We will now put the queftion — Can this company expedt greater, or even i^o great advantages in the courfe of the nexc eight years, as thofe they have poflefTed during the lafl }■ The anf.ver is obvious. No, The opportunity has been lod", by mal-adminiflration ; and though the wifeft Tegulations may be eflablilhed to prevent future mifmanagement, yet it w^ill require more than eight years to reltore the com^ G3 30 EVERY MAN pany's affairs to fo flonrifhing a ftate, as to enable them to increafe their dividends on jufi: grounds ; and unlefs it can be done with a tolerable certainty of continuance for a given length of time^ it is to be hoped government will prevent the fatal effedts of hafhily adopting fuch a meafure a fecond time. From thefc premifes, then, I think, v/e may fairly draw the following con- cluiions. That India Stock cannot be worth more, upon an average, for the next eight years, than 150 ^er cent, allowing for every advantage to be derived from the new adlsof parliament already mentioned, and from the continuance of the national peace ; unlefs the government funds iliould, by any unforefeen circumflance, rife fo rapidly as to reduce the value of money from 5 to 4/)^r cent, annual in- terefl, in which cafe, the calculations on the value of India flock mufl be made accordingly. HIS OWN BROKER, p That all fpecious practices to raife it above that price, may be confidered as the artifices of defigning men, endeavouring to re-eflablifh thofe deftrudtive jobbing con- tradts, which give fuch dangerous wounds to private credit. And that of all others, the trading funds are the mod difadvantageous to buy into, when the premiums run very high, and the nioft hazardous on any flock-jobbing plan. We will now return from this long, but very interefling digreflion, and difcufs the remaining fubje(5t of this chapter. The GOVERNMENT ANNUITIES, and other fecurities for money, {land nearly in the fame light, with refpedt to the firfl raifing of the fums granted, in aid of go- vernment, as the flocks of companies, that is to fay — The money is raifed by authority of parliament, the fum is li- mited ; and after the fubfcription is full, no more contributors can be admitted. In order, therefore, to remove the incon- veniences that might arife to contributors ■C4 52 EVERY MAN from being obliged to keep their mone^ conftantly in the hands of government^ and that thofe who have money to lay out^ and had not an opportunity of fub- fcribing, may be enabled to purchafe of the fubfcribers, the fame method has been tak-en of opening transfer-books, and of ap- pointing certain days and hours for tranf- fering and accepting, or for buying and felling of the annuities :. fo far the govern^ ment fecurlries and theilocks of compa^ nies agree ; \vq Ihall now fee wherein they differ. As the government are not engaged" in trade, a fhare in their annuities cannot bear any premium, but what will arife from the real value of fuch fhare at the time it bears a premium. To iiluflrate this, let us fup- pofe that I buy at prefent looh Ihare of three per cent, annuities for 58). the cur- rent price ; the reafon I buy it fo low is,, that money is worth at prefent above /i;^ per cent, 'per annum, and I am to receive only three per cent, therefore I give a prin- cipal fum, in proportion to the intereft I HIS OWN BROKER, jj am to receive But, whenever the nation^ Ihall enjoy a general peace^ during ten years, or more, my rod* fhare in the three per cent^ annuities, which I bought for 5 B I.' may become worth iccl. or more;, but from whence will this great profit arife ? Not from the uncertain advan- tages of trade, but from a natural event, a long peace, which may in time lower the value of money (the government not* being in want of extraordinary fupplies)* to fuch a degree, that m^ore than three per cent, cannot be obtained any where, nor even that, on fuch good fecurity as my fhare in the three per cent* annuities i therefore I may be offered a premium for it on account of its intrinfic value ; and that the cafe here fuppofed is founded on a precedent, may be proved by referring, back to the prices of three per cent, an- nuities in the time of the Scotch Re- bellion*, and comparing th-sm with the * See the London Magazine for Nov. 1745. 34- EVERY MAN price of the fame annuities before the breaking out of the late war. A time of peaee is no fecurity for the premium given on the ftock of any trading company, becaufe many events may hap- pen, as eafy to conjedlure as to mention, by which they may fuilain great loiTes, and which may occufion the premiums on ihares totally to fubfide. Again, the tranfadlions of no fociety whatever are fo open, nor fo ibon known, when they concern the public, as the tranfadlions of the Britlfn government, A number of fatal accidents may be concealed for a long time in trading focieties ; but a rup- ture with a foreign power, which is al- mofl the only thing in time of peace that ought to alTecl the price of the govern- ment fecurities, is prefently knovvn ; and confequently, as foon as the rumour of a war is fpread, the perfon who has given a premium on annuities has an opportu- nity of felling at a fmall iofs, fo^ir ox five per cent, but whenever a long-concealed misfortune that has happened to any trad- HIS OWN BROKER. 35 ing fociety comes to be divulged, or that the fociety takes any unexpedled mea- fures, the fall on the fliares in the ftock of fuch a fociety may be twenty or thirty per cent, in one day. Befides, the difference between the go- vernment annuities and the flocks of trad- ing companies, when bought at a difcount, (or under par) is very great ; for Ihould it ever happen, that the fhares in the capital or flock of any trading fociety fall con- fiderably under par, it may reafonably be concluded that the finances of that ^fociety are in a bad condition, and their trade on the decline ; but the govern- ment annuities felling at a great difcount IS only a proof of the increafe of the value of money, which will always be in pro- portion to the demands of the flate for if. Thus he, who, at the beginning of the late war, would willingly have lent the government his money at three and a half per cent, will not now part v/ith it under f.ve per ce?it^ and a douceur, becaufe the C 6 ^6 EVERY MAN wants of the flate continuing, have raifed the value of money ; but this is no argu- ment, either that the finances of the ftate are in a bad condition, or that its credit is on the decline : on the contrary, J do not know of any public event (the American v/ar excepted) which has in the leail weakened public credit, nor which ought to have caufed any great variation in the prices of the government fecurities ; and here I mull add a few words, which I am certain will greatly offend the monied men, but may not be difagreeable to the public, 1 am humbly of opinion then, that a method might be found out of keeping the funds from thefe perpetual variations, (except in cafe of an adual, formidable in- vafion, the total deflrudion of our mari-^ lime force, or any other more remarkable cataftrophe than any that has happened during the war), and of fupplying the go- vernment with Vv^hat money they want, on the fame terms at the latter end of a war as at the beginning, provided it docs not HIS OWN BROKER. 37 lafl fo long as to make a real fcarcity of money; which, I thhik, was not the cafe in the late waivas appeared by the Imme- diate filling of every fubfcription for raif- ing the annual fupplies. I confefs it to be an Herculean labour, but yet it is to be accomplifhed if the influence the brokers have over the monied men is once deftroyed, which it is hoped this work will,, in part, if not totally^ effea. The Bank annuities, and other govern- ment fecurities, inferred at the beginning of this chapter, together with the follow- ing capitals, or flocks of companies, and their annuities and bonds, make up the lifl: that is commonly inferted, with their feve- ral prices^ in the public news-papers, un- der the general title of Stocks^ Bank flock, Ave and a half per cent^. per annum. South-fea flock, three and a half per cent, India flock, eight per cent, 38 EVERY MAN India annuities, three per cent, India bonds, four per cent. They are all transferable, or faleable, without any reftraint or difficulty, as will appear In Chap. III. wherein the method of doing it is fully explained. Having thus given a fuccind: account of the public funds, in a flyle which, I hope, will be intelligible to the meanefl capacity ; I have only to add a few remarks that na- turally arife out of the explanation I have given of them, and which, I hope, will not be entirely iifelefs to the public. It appears then, "That the government ** fecurities of England are abfolutely pre- ^' ferable to all others whatever, «^ That fhares in the flocks of the public *^ companies of England are nearly equal " to the government fecurities, and far *' preferable to the fecurities given by pri- ** vate focleties, or particular perfons. " That fliares in annuities bought at a *' great difcount, that is to fay, greatly HIS OWN BROKER. ^^^ ^^ under par, are the cheapeft and moft *^ advantageous to the purchafer, and con- " fiderably more profitable than any flocks ^' bought at a high premium : becaufe *' the probability of the premium (given « on any (lock) totally fubfiding, is infi- *« nitely greater than that the low price *' given at prefent for three per cent, an- *^ nuities, Ihould fall much lower; and *' there is a greater probability of their ** rifing, and a greater likelihood of its " continuance, than there is that the pre- " mium now given on any Hock (hould " rife much higher, or continue fo high as " it is, for any number of years r there- *• fore Ihares in flocks that bear a pre- *« mium, are the deacefl, and fhares in " funds or annuities under par, the " cheapefl to purchafe. ^' Thatperfons who havefubfcribed, or " bought into the three per cent, or other *' government fecurines fome years ago, at *' a much higher price than the prefent, " ought not to fell out now, unlefs on an 4(^ EVERY MAIT "^ unavoidable emergency, let what will be ^' the temptations offered by brokers to en- *' gage them to do it ; (incey in their cafe, *^ they will fcarce better themfelves by any *' new fubfcription ; and fince, whenever ^« they offer to fell, they will always find ^« buyers, whofe deiire of buying what they •• want to part with, plainly makes a doubt *^ of the matter; for it flievv^s that the pur- " chafers (or their brokers for them) have " as good an opinion of the annuities the «^ fellers are going to part with at a great ^^ lofs, as they have of any new fubfcrip- " tion*:: therefore, unlefs inacafe of ne» «^ ceffity, never remove your money at a " lofs ; but wait patiently till the fituation " of public affairs has brought it back to ^' the price you gave, or a much higher^ * It is the broker's bulinefs to throw out all pof- fiblc baits to engage people to be ccntinually chang- ing from one fund to another, for this brings grift to his mill ; every movement of this kind producing frefli commiirion-money, HIS OWN BROKER. 41 '^ and never believe any idle rumours of ^^ bad news, fo far as to let them frighten ^' you out of your interefl in the govern- ^' ment fecurlties ; for thefe fecurities have '^ not for many years, nor are likely again *' to be in any real danger. " Finally, That the man who wants ta *^ engage you to be continually changing '^ the lituation of your money, is infiu- " enced by feme private motive ; for ^^ which reafon never follow his advice, <* unlefs you are a jobber yourfelf." CHAPTER II. Of the myjiery and iniquity of Stoch-jchbing^ in all its various branches, I Give this account of flock-jobbing the fecond place in this little piece, becaufe it may prove an agreeable relaxation to the mind after fo dry a fubjedt as that of the fiocks i and likewife^ becaufe it is proper 4:i EVERY MAN to give an account of the various branches of ttock-jobbing^ before I infert any general inlirudions for tranfading the feveral parts of the bufinefs of the public funds. It will be neceflary to premife, that the iniquitous art of flock-jobbing has fprung, like a great many other abufes, from the "bed: of bleflings. Civil Liberty, the benign influence of which the Englifh na- tion, to its immortal honour be it recorded, is ever fludious to extend to foreigners as well as to its natives. Moral writers afTert, that there is no good thing on earth which may not be abufed : but this is no argument that the good, out of which evil is produced, is the lefs valuable : on the contrary, it only ag- gravates the guilt of thofe who are fo cor- rupt as to make even virtue itfelf ferve the caufe of vice. From the free liberty granted to all fo- reigners to buy into, and fell out of our puWic funds, the diabolical art of flock- HIS OWN BROKER, 43 jobbing took its rife, and is now arrived at its meridian of iniquity. The great concerns which foreigners, and efpecially the Dutch, have had in our funds for more than half a century pafl, demonftrate the goodnefs of the Englilh fecurities in preference to all others ; that the manner in which the bulinefs of them is tranfadted, is the plainefl and mod free from all difficulties and embarrafTments ; and that the pundtual payment of fmall intereft is, by all prudent people, more highly prized than the vain promifes af much larger interefl, where there is not a probability of its being regularly paid at the end of every fix months, perhaps of its ever being paid. The credit of Great Britain is greatly fuperior to that of France, owing to the inviolable honour of her Parliaments in keeping to their engagements with the public creditors of the nation. A moft remarkable and glorious inllance is at this time given of the unimpeachable and un- 44 EVERY MAN parallelecl honour of the Britlili govern- ment, in the adminiftration of the p\iblic Funds. Many of our fellovv-fubjedts in America, as individuals, and many of the Revolted Provinces as bodies corporate, have monies vefled in our Funds, and though they openly revolted from their Sovereign and the Parent State, yet their capitals were as fecure, and their intereft as regularly paid, during the late fatal and difhonourable civil war againft them, as if no fuch unhappy event had taken place. The Dutch likewife, though they vio- lated the faith of treaties, and forced Great Britain into a war with them, found their immenfe property in our funds per- fectly fecure ; and were left at full liberty to withdraw it by fale at market, the fame as any other of the public creditors. The confifcation of this property,. money being the finews of war, woula, in other coun- tries, have been confidered as found •policy* HIS OWN BROKER. 45 The French government, on the con* trary, has often violated the conditions on which fhe borrowed money for the exigen- cies of the Hate : therefore, as long as the prefent happy conftitution of Great Britain remains, fhe will conftantly have the advan- tage of France in obtaining loans on the flrength of her public credit, not only from her own fubjects, but from foreigners of every denomination. " Had one half of the ads of power ^^ been exerted with us, which have been " fo familiar in France ; had half the *' liberties been taken in tampering with " the claims of creditors, a total bank- ^^ ruptcy would long ere now have been " the confequence, *' Example works wonderful effeds; *^ and the advantages of a fecurity to be *' depended on, will every day more and *' more enea^e the monied intereft to *' prefer this to any violent and preca- <^ rious profits." This judicious remark *s made by Sir James Stewart, in his ela- 46 EVERY MAN borate work, intitled, "An Inquiry into the Principles of Political Oeconomy." Again, the Dutch and other foreigners having fo large an intereft in our public funds, has given rife to the buying and felling them for time, by which is to be underflood, the making of contradts for buying and felling againfl any certain pe- riod of time, fo that the transfer at the public offices is not made at the time of making the contrad: for transfcring it; and this has produced modern ftock-job- bing, as I fhall prefently have occafion to fhew. Nothing could be more ju(l or equitable than the original defign of thefe contradts, nor nothing more infamous than the abufc that has been, and ftill is, made of if. The original intention of thefe con- tradts, I imagine, was, that a Dutch- man, or any other foreigner, having oc- cafion to buy into, or fell out of our pub- lic funds, and being informed by his cor- refpondent at London of an advantageou;s 6 HIS OWN BROKER. 47 opportunity of doing either, might be enabled to embrace fuch an opportunity, by writing to his friend to contrad: im- mediately for any quantity of flock againft fuch a time, before the expiration of which, he might fend his correfpondent a remittance, if it did not fuit him to do it immediately ; whereas, if it were not for thefe contrads, the transfer (in the com- mon courfe of bufmels) being to be made, and the money to be paid at the fame time, if it did not fuit his correfpondent to ad- vance it, nor him to remit it, the oppor- tunity would be lofl ; and again, that his correfpondent might not be prevented from taking advantage of a favourable opportunity either of buying or felling for him, by waiting the arrival of powers of attorney, or other necelTary inftruments, iiuthorifing him to tranfadl the bufniefs at the offices. This is the fhorteft and mofl probable account I am able to give of the original intent of contrads for felling flock for time 43 EVERY MAN —the four principal times for which con*- tradts or bargains are made, are— February . — May — Auguft-— and November — and thefe are called, in 'Change Alley, the Ref- counter* fettlings. The ccrrefpondents of * In fome former editions of this work the Au- thor declared himfelf at a lofs for the etymology of the word Refcounter, but he is now enabled to give a full account of it, for which the public are in- debted to a deceafed gentleman who formerly re- fided in Holland in a public capacity, who was fo obliging to write the following letter to the author, «' SIR, " I thank you for your book, which has made * ' me underlland what before I had not the leall no- '* tion of. — In your 29th page, in the note, you fay '* you are at a lofs for the etymology of Refcounter. <' I fliall take the liberty to give you the meaning *' of that word as ufed among Dutch merchants, by ** which you may fee how it has been adopted in the *' Alley. — It is cuflomary with Dutch merchants, " who have mutual dealings and running accounts, •* and who live in the fame town, to give a receipt *' at the bottom of a bill of parcels, or invoice of *• goods fold to each other, in thefe words, fohit HIS OWN BROKER, 49 fuch foreigners as are concerned in our funds being generally merchants, thefe having no fpare time, have recourfe to brokers, who make thefe contracts for them ; and the method is thus : a broker declares that he has a commlflion to buy (fuppofe in the month of May) loool, three per cent, annuities for the Refcoun- ters in Auguft; and it is not long before he *' per refcontre^ which is underflood to mean, that •* the value of fuch invoice has been adjufted in ac- «' count current between them j even fmall notes of «* hand, or affignatfens (as the Dutch call them) are ** thrown into thefe accounts current. — When pay- ** ments are made other ways, they fay, Jolvit per ** hancOi folvit per cajja^folvit per ivej]}!, d)CC, this ** denotes the different manner in which payments •* have been made, and facilitates the tracing of any *' articles that may be difputed. I fliall be glad if *' this throws any light upon the etymology of the *' word Refcounter, as ufed with you, and am, Sir, '' Your humble Servant, &:c. Rotterdam. « ROBERT IRVINE, « Agent to H.B.M.** D 5© EVERY MAN finds a brother broker, who declares he has a commlffion to fell loool, for the fame time ; after agreeing then on the price, the one marks down in his book — fold toZeru- babel Ambufh loool.threepercent. annui- ties for Auguft — and the other — boughtof Jemmy Sl)^ loool. three per cent, annuities lor that time ; and thus the bargain is fi- nilhed till Augufl : but the principal, or perfon who employed them, is not declared on either (ide, as it ought to be ; of which hereafter, when we come to treat of the laws in force, refpediing Brokers. Were this proceeding to flop here, it would only anfwer the original defign (ex- cept in the lall-mentioned particular) and would be fo far juft and equitable ; but the mifchief of it is, that under the fandlion of felling and buying the funds for time for foreigners, brokers and others buy and fell for themfelves, and for all employers, in whom they think proper to place a confi- dence, though they have not any property in the funds they fell, or any cafh to pay HIS OWN BROKEPv. 51 for what they buy, or the leafl delign to transfer, or accept, the funds they fell or buy for time. The buiinefsthustranfadled has been de- clared illegal by feveral ads of parliament, and is the principal branch of flock-job- bing, and the genuine fource to wkich we are indebted for that variety of private letters from different quarters of the globe, in time of war — fecret intelligence — im- portant events — bloody engagements — invafions — Spanifh fleets joining v/ith French^ — difference with foreign powers- deaths of certain great perfonages — break- ing out of the plague — alterations in the miniflry — and that infinity of et cateras of the fame kind, v;hich are to be found inferted in our news- papers one day, and contradided the next ; but which are all fubfervient to the great purpofe of pro- moting the trade of flock-jobbing. In order to prove that flock-jobbing pro- duces a great variety of articles in the news- papers,- as.. vyell as rumours and reports in D 2 SZ EVERY MAN coffee-houfes, and the better to explain the whole myilery of this art, I fhall endeavour to give a clear account of flock-jobbers ; and fhall diftinguifh the different clafTes of them ; to convince the public, that it lies under a great error, when it confines the contemptuous term of flock-jobbers wholly to brokers ; an error, however, which of late has univerfally prevailed ; for whenever flock-jobbing has been brought upon the carpet, either in pe- riodical effays, or upon the flage, the cha- raders have been defciibed either as Jewifh or Chridian brokers, and thofe of the meanefl and Ihabbieft fort, except in a very fenfible little eflay in the Imperial Magazine for Auguft, 1760, in which the author veryjuftly introduces fome cha- radters in a higher ftation of life : and indeed it were to be wifhed that the higher orders of men amongfl us had not this difgraceful title, to fully their bright honours; but fo it is, that the prefent immenfe national debt has introduced a HIS OWN BROKER. ^^ general fpirit of gaming among all ranks of men poflefTed either of property or credit, and playing in the funds is be- come as common as playing at cards. Stock-jobbers may be divided into three different forts : The firll are foreigners, who have pro- perty in our funds, with which they are continually jobbing. The fecond are our own gentry, mer- chants, and tradefmen, who likewife have piroperty m the funds, with which they job, or, in other words, are continually chang- in-g the iituation c>f their p.roperty, accords ing to the periodical variations of the fund?, as produced by the divers incidents that are fuppofed either to leifen or increafe the value of thefe funds, and occafion fud- den rifes or falls of the current price of them. The third, and by far the greatefl num- ber, are ftpck-brokers and their employers, who with very little, and often with no pro- perty at all in the fund?, job in them on 54 EVERY MAN credif, and tranfadt more bufinefs in the feveral government fecurities in one hour, without having a fhilling of property in any one of them, than the real proprietor of thoufands tranfadls in feveral years ; the following inftance will ferve to elu- cidate this remark. A few years fince, a flock-broker wanted to prove a debtof lool. under a commif- iion of bahkrnptcy ; the reft of the credi- tors objeded to it ; and he was aiked, how his debt arofe ? he replied, it was for bro- kerage, for buying and felling of ftocks for the bankrupt. This was thought very extraordinary, as the time of tranfadling this bufinefs for him was the very time when he was greatly indebted to his feveral creditors ; and confequently it was fuppof- ed, that if hehad poflefTed fuch a property in the funds as to enable him to owe his broker lool. merely for commiffion, which is no more than 2S. 6d, per cent, he had no occafion to remain in debt. In fhort, the broker was not allowed to come in as a HIS OWN BROKER. 55 creditor, upon which he very foolifhly commenced a fuit againft the parties con-- eerned, and was moft juflly nonfuiced. It appeared upon the trial,that he had bought and fold for the bankrupt, of various go- vernment fecurities, about 70,000!. in one quarter of a year, that is, from one ref- counter to another ; and that the bankrupt at this time had not, nor could not be fup- pofed to have, lool. property in any one of the funds. As the v/hole tranfadlion there- fore was flock-jobbing, and expreily con- trary to a(ft of parliamenty the bringing fuch a caufe into a court of judicature' was reckoned a mofl extraordinary piece of affurance, and caft that odium and contempt on the gentlemen of 'Change Alley, who attended in behalf of their brother, that they jultly merited. As for the broker himfelf, he received a very fevere reprimand from that moft dif- cerning and upright Judge, Lord Mans- field, the honour and ornament of his country. D 4 56 EVERY MAN Foreigners, who have property in our funds, and are jobbers, are the moft guilty of injuflice to the public of any of the par- ties concerned in this iniquitous pradtice; becaufe they are often men of credit, and fometimes of authority, in their own coun- tries, which are perhaps in alliance with us in time of war, and therefore whatever faife news they fend over, to anfwer their private jobbing accounts, is not fo foon fufpc ftands charged (in printed me- moirs) by his own fecretaries^. Meflieurs Tort and Rogers, with having given them orders, while he refided in Lon- don, to game very deep in the Alley for his Excellency's account, and^ while HIS OWN BROKER. 6^ fuccefs attended their enterprizes, the ambaffador received the profits ; but when a long run of ill fortune brought them confiderably in debt, his Excellency de- nied having any knowledge of the tranf- adilon, refufed to pay the balances againft him, retired to France, and proiecuted his. fecretaries for defamation: ' By his great power and interefl he got them thrown into prifon, but they publilhed juftifying memorials, which convinced the unpre- judiced, that the ambaffador had duped them, and defrauded his Englilh flock- jobbing creditors.. The fecond clafs of ftock-jobbers are our own countrymen, of almofl every rank and denomination ; and as fome of very high rank among us are extremely ad- did:ed to common gaming,, it is no wonder to find them deeply engaged in the more refined and artful games of the Alley, Thefe do more or lefs prejudice to the public, in proportion to their flation and influence;, and the fums they job for. 64 EVERY MAN Thus^ for inftance, a man who enjoys any confiderable poll in the nation, by which he may be fuppofed to have the earliefl intelligence of all events that can tend either to rife or fall the flocks, and whofe veracity, or rather whofe honour, w^ill not admit the fuppofition of his pro- pagating a falfehood — if he happens to be a jobber, and, in order to fettle a great account in the Alley to his advan- tage, Ihould for once fvverve from the truth, and, upon his honour, report a piece of news to be true, which is abfo- lutely falfe — will do as much mifchief for a Ihort time, as the foreigner already mentioned. Again, the general of an army, or the commander of a fleer, who are jobbers, fhould they have a great deal depending in the Alley, and their account Ihould Hand fo as to require a fall of the Hocks — if they difappoint the fanguine ex- pedtatlons of the public, and, inftead of gaining or purfuinga vidtory, only jufl do as much as will barely fave their lives at a HIS OWN BROKER. 65 court-martial, becaufe they will not, by a complete vidtory, raife thofe funds they want to fall — are (lock-jobbers, who do the public a double prejudice ; firfl:, by not performing their duty in the important fervices they are intrufted with ; and, fe- condly, by cauling a fall in the funds that may alarm and frighten many of the ad- venturers and proprietors, and engage them to fell out their property to a dif- advantage. I am fenfible that it will appear an ab- furd fuppoiition to imagine, that perfons in fuch high flations fhould be capable of a negledl of duty on fuch bafe motives : and indeed I will not pofitively aflert, that we have ever had any inftance of it ; bur, at the fame time, give me leave to obferve, * that both ancient and modern hiftory furnifh us with many remarkable inftances of the bafefl adtions being committed by men of high rank, and the mofl exalted flations in government, for fmaller pecu- niary advantages than thofe which might 66 EVERY MAN arife in the cafes here fuppofed — and that the gain of twenty or thirty thoufand pounds may, with the covetous, or pro- digal in high life, outweigh the lofs of honour, or a difgraceful fentence from a court-martial. . It mufl: certainly be of great advantage to any ftate, to examine flrictly what gam- ing connections of any kind theperfon has, who is a candidate to reprefent the people of this kingdom in parliament; for who- fo likely to take a bribe, as he who lofes thoufands in an hour, and pays his debts of honour— like a man of honour. Let us now proceed to the monied man, who has no other influence or authority, but that which his cafh gives him ; but who, with the advantage of having a cur- rent capital of ten or twelve thoufand pounds, becomes a man of great confe- quence in the Alley, and has no fmall in- fluence on that part of the public, who have any concern in the funds. HIS OWN BROKER. 6j He deals- in the Alley with a defign to double this fum by a much fpeedier me- thod than by ailavifn, tedious application to the fmali profits of merchandiiing. He has experienced the furprifing effects of flock-jobbing already, having increafed his patrimony, by a diligent attendance in the Alley, from two to twelve thoufand pounds, and is now become an adept in the art : he has not a friend or acquaintance whom he does not attempt to convince of his fupe- rior judgment in the funds, and that he has the earlieft and moft authentic accounts from different parts of the world (by pri- vate letters) of all events that concern the nation, and can any ways effed: the^funds. Sometimes, when at war, he is well a flu red that we are at the eve of a peace, and ad- vifes all his friends to buy flock : this of confequence procures a rife, v/hich was what he wanted, being a ^ Bull of twenty- * A Bull is the name by which the gentlemen of 'Change Alley choofe to call all perfons who con- trail to buy any quantity of government fecurities. 68 EVERY MAN thoufand three per cent, annuities; and by- propagating the report of an approaching without an intention or ability to pay for it, and who confequently are obliged to fell it again, either at a profit or a lofs, before the time comes, when they have contraded to take it. Thus a man who in March buys in the Alley 40,000!. three per cent, annuities, for the refcounters in May, and at the fame time is not worth ten pounds in the world, or, which is the fame thing, has his money employed in trade, and cannot really take the annuities fo con- tra(5ted for, is a Bull, till fuch time as he can dif- chargehimfelf of his heavy burden by felljng it to another perfon,and fo adjufling his account, whicjj, if the whole houfe be Bulls, he will be obliged to do at a confiderable lofs ; and in the interim (while he is betwixt hope and fear, and is watching every opportunity to eafe himfelf of his load on advaor ' tageous terms, and when the fatal day is approach- ing that he mufl fell, let the price be what it will) he goes lowering up and down the Stock Exchange, and from office to office ; and if he is alked a civil queftion, he anfwers with a furly look, and by hia deje6led, gloomy afped and morofenefs, he not badly reprefents the animal he is named after. A Bull is llkewife a perfon who has bought, and adlually paid for, a large quantity of any new fund„ HIS OWN BROKER. 6j^ peace, he has engaged fo many people to buy, that he has raifed the price, and by that means has got rid of his twenty thou- fand, at two or three per cent, profit. Another time he has juft received intel- ligence that the Spaniards are on the point of joining the French, and will immedi- ately affift them with a formidable fleet ; he therefore advifes all his friends to fell out, for flock will fall ten per cent, and if they fell out now, they will have a fine opportunity of buying in again much lower. To confirm their belief of the intelligence he has received, and to make his pradice correfpond with his opinion, he really fells out five or fix thoufand pounds, which he has ready for this oc- cafion in fome of the funds ; his unfufped:- CGmmonly called fubfcription, while there is no more than one or two payments made on it, but who is unable to pay in the whole of the fum, and confequently is obliged to part with it again before the next pay-day. 70 EVERY MAN ing friends, being by this means convinced of the truth of what he has related, fol- low his example, and unlverfally fpread the report -, fo that the great number of perfons who are thereby induced to fell, iind the coolnefs of thofe w^ho want to buy, confiderably lowers the price, which is all the good man aims at, who at this time is a ^^Bear in the Alley of thirty * A Bear, in the language of 'Change Alley, is a perfon who has agreed to fell any quantity of the public funds more than he is poflefled of, and often without being poiTefTed of any at all, which, neverthelefs, he is obliged to deliver againfl a cer- tain time : before this time arrives, he is conti- nually going up and down fceking whom, or, which is the fame thing, whofe property he can devour; you will find him in a continual hurry ; always with alarm, furprlfe, and eagernefs painted on his coun- tenance J greedily fwallowing the leafl report of bad news ; rejoicing in mifchief, or any misfortune that may bring about the wiflied-for change of falling the flocks, that he may buy in low, and fo fettle his ac- ccunrs to advantage. He is eafily diftinguiflied from the Bull, who is fulky and heavy, iind fits in lomc HIS OWN BROKER. 71 thoufand pounds of feme of the annuities or flocks, which he has now had an op- portunity of buying to adjuft his account with, on much better terms than he could have bought them, if it had not been for this news ; and the lofs he has fuftained on the five or fix thoufand pounds (fold on- ly as a blind) is trifling, in comparifon of cerner in a melancholy poflure : whereas the Bear, with meagre, haggard looks, and a voracious flerce- iiefs in his countenance, is continually on the watch, feizes on all who enter the AUe}-, and by his terrific weapons of groundlefs fears — and falfe rumours- frightens all around him out of that property he wants to buy ; and is as much a moniier in nature, as his brother brute in the woods. The author hopes this, and the foregoing note, will be carefully attended to, as he fliall often have occafion to men- tion thefe two brutes in human form ; and will not give any farther defcription of them, imagining this fufficient, not only for the underflanding this little treatife, butlikewife fully to defcribe them, and the difference between them, to all tolerable judges of phyiiognomy, who may hereafter meet with them in their vifit to the Stock Esthange, the Bank, or any other public offices. 3 72 EVERY MAN the lofs he has prevented, or perhaps of the profit he has made, on clofing his flock* jobbing account. To finifh this charadter, let me inform the public, that the letter of intelligence on which this fcene of adtion is founded, was made abroad, by the gentle- man's defire, and according to his own form, to anfwer this very end. Nay, if that could not be contrived, for want of a correfpondent abroad, it was very eafy to fupply that defed: by means of any Ger- man, French, or Dutch clerk, in the compting-houfe at home. Next to this clafs of jobbers follows a whole group of characters, who are mer* chants, tradefmen, and Ihopkeepers of va- rious kinds; and who cannot reafonably be fuppofed to have laid out their capitals in the funds. To fay the truth, the greateft part of them have not a Ihilling of property in any one of the government fecurities. Thcfe men therefore walk the Alley on credit and honour ; that is to fay, as they are known to be fubilantial tradefmen, and HIS OWN BROKER. 73 men vvhofe word (in the city ftyle) is as good as their bond ; they have nothing to do but to give orders to a broker to buy them 50 or 6o,oool. of any of the funds, for any particular time, or to fell the fame fum. This order is executed as foon as the tradefman has aflured the broker, that he will adt upon honour, and pay any lofs that may arife upon doling the accounf^. *^ Some tradefmcn, or rather merchants, of great eminence, have occaiionally given a terrible blow to Hock-jobbing, by refufing to pay the lofs on their jobbing accounts, artfully pleading the a6l againil jobbing, mentioned in the former part of this work, which declares all Hock-jobbing bargains to be ille- gal, null, and void. A few more inftances of this tind will anfwer the end of extirpating this infamous practice, more efte£tually than twenty adts of parlia- ment ; but is by no means honourable or equitable, for the unfortunate broker, in this cafe, is made ref- ponlible to his brethren for the lofs, and mufl adjull it with them, or lofe his credit : it is therefore the fatality of this expedient, not the equity, that I mention as a means of fuppreffing time-bargains, which have no foundation in real property. E 74 EVERY MAN We uirl fuppofc for a moment then, that one of thefe people in trade is a coffee- houfe politician ; and has lately in his own imagination found out, that fome cofinec- ti.)ns the adminiftration are on the point of entering intoabroadjCrfomemeafures they are likely to take at home, will tend to raife the (locks confiderably, which now bear a low price. Fired with the idea of greater gain, and much eafier to be pro- cured, than any he could hope for by an attendance on his warehoufe, he quits it, and runs into the Alley, w^ere he gives or- ders to buy 70,ccol. three per cent, an- nuities, for the following refcounters : wheji this is done, he returns home fully fatisfied vnth his fuperior judgment; and, to make his cafe the better, he once more quits his Ihop earlier than ufual in the evening, to entertain hisftliow-citizens, at fome punch- houfe or tavern, with an harangue on the great advantages we are likJy to gain over the enemy in a ihort time ; and aiTures them, that now or never is the time to get HIS OWN BROKER. 75 money by buying flocks : and if, luckily (in time of war) there is a town befieged b.y • the Britifh forces, he is ready to lay nine to one all round the room, that it is in our hands before the thirtieth of May (the time, we will fuppofe, his account is to be fettled) This fatal day however ad- vances, and no fortunate news arrives.-— The good broker waits on his friend to ac- quaint him that the time is drawing nigh ; and defircs to know- what is to be done with the 70,0001. annuities, which he well knows the tradefman never intends tatake. ^'. The y.oung citizen replies by inquiring /' if there is no news with the lafl mail, *^ no rumor of a peace, nor no advantage *' gained over the enemy ; to which the " fcemingly melancholy broker anfwers, " No,dearSir,quite thecoritrary; thereis ^^ a report that we have lofl a battle j and <^ that there will foon be a change in the ^^ miniftry. — A change in the miniftry ! *^ heaven forbid ! then we are all ruined : ;f^ and do you really believe it, Mr. Long- E 2 ^6 EVERY MAN " ihanks ? Yes, Sir ; upon my honour, I <^ am afraid it is too true, for they are all *^ turned fellers to-day, and three per cents. *' are fallen four per cent, below the price *' you bought at ; and they fay the houfe <^ are Bulls for the refcounters. The devil *' they are, Sir! why what would you ad- *' vife me to do then ? I fhall lofe finely, I •* fuppofe! Do, Sir! why 1 think — I think <« — I would advife you to fell, and clofe •' the account ; for I am afraid you will *' only make it worfeby flaying till the laft <« day. If indeed, either Continuation •' or Backadation would ferve your <* purpofe, I would keep the account *' open, but the complexion of the mar- *« ket will not warrant any farther rifk *. * Continuation is a premium given when the price of a fund, in which you have a jobbing account open, is higher for /m^ than for ready monevi and your fettling day is arrived; fo that you mufl take the flock at a difadvantage : in this cafe, you give from i to 3 per cent, to put off the HIS OWN BROKER. 77 " It is a little unlucky, to be fure ; but *^ we ihall recover it again, and more to " it, next refcounters. Shall I fell. Sir > *' — Why, yes ; the firft lofs is befl ; and " pray let me have the account, that I may ^^ dilchar2:e it, for I lliall be out of town " on the fettling day." In a fhort time, Mr. Longfhanks returns, and thus conti- nues the fcene : " Well, Sir, I have done '^ it at lail at I t ; I believe the people are ^* mad. — I thought I fhould never have ** got it done ; — they are all fellers to a •* man, — ^Weli, I muft make all the hafte *^ I can to Sir Solomon Wronghead, for ** he is a Bull of half a million ; and I muft *^ advife him to fell before things grow *' worfe. Here, Sir, is your account. fettlement, and continue the account open for a month, or three months, Backadation means a confideration given to keep back the delivery of flock when the price is lower for time than for ready money. E3 78 EVERY MAN Feb. 28tb, 1784. Bought for Mr. Deputy Dowlas 7o,ocol. three per cent, annuities for the refcounters in May, a, 61. May 25th, 1784. Sold for Mr. Deputy Dowlas 70, ocoi. three per ceiit. ar.nuities for Tr.: V refcouDtcrs, a, 56I. " ThedifferenceorlofSjSIr, "J "is 4-;- per cent, which ^3150 o ** comes to J *' And my commiffion for <^ buying and k " per cent, is million for J liingatan I f ty 10 3237 - For how trifling are the fums generally played for at cards, in comparifon of the deep flakes in the Alley ? How infinitely do the confequences fall fhort of thofe which attend gaming in the funds? In one cafe, noblemen and gentry dip their eftates^ andimpoverifli their families; in the other,, fubdantial merchants and citizens, who are the very foul of commerce, are ruined ;> and the flate, which fubfifls by the extent and flouriihingconditionof its commercial intereft, mult fuffer in the end. Again, let it be> confidercd, that in* fome, at leaft, of our grand card aflem- blies, all foul play is excluded; and the chances are equal," except where fuperior fkill in the game gives the advantage^ Now no fuperior fkilPin any game at card* can give an advantage equal to that which the crafts and fubtleties»prad^ifedby the oldl fi'ancards in the Alley, gi-ve tliem over the young and unexperienced; and this Ihould not only deter men frgm engaging on (uch E 6 84 EVERY MAN unequal terms, but fhould likcvvife induce them to be very fparing of their refledlions on thofe who have loft confiderable fums in the Alley, and have quietly fat down with the lofs ; fince fuch perfons might be Ignorant at iirft, that the practice of ftock- jobbing was diihonefl in itfelf ; or that, in order to fucceed in it, a man mull diveft himfelf of every fentiment of humanity and integrity, and muft be deaf to the cries of the wretched whom his fuccefs has re- duced to mifery ; he therefore, who, hav- ing found his error, fubmits to the fatal blow, and tamely wears the name of diipey rather than flay in the Alley till he be- comes 2Ljharper, merits the compaflion, if not the applaufe of a Chriftian people. A French author very juftly fays ; Le defir de gngner, qui nuit & jour occupe. Eft un dangereux alguillion, Souvent quoique I'efprit, quoique le coeur foit bon. On commence par ctre dupe, On fiiiit par ctre fripoii. HIS OWN BROKER. 8^ Happy therefore is that man, who has only the folly of being a dupe to refled: on ; and not the infamy of (laying in the Alley till he became a fripon, or fharper. In a word, the chance of gaining is very fmall, and the uncertainty of being paid, when you gain, very great ; for w^hich reafon, t intreat thofe who have not yet entered the Alley, never to frequent it on a jobbing account; and thofe who have fin n el:! al- ready, to go their ways and fin no more, left a worfe thing come unto them ; iefV their fortunes, together with their liberty, fall a facrifice to the fatal confequences of repeated loffes in the Alley, and their names, which once ftood foremofl in the bright records of unfullied honour, fhould be funk into oblivion, or, by the hafty* judgment of an uncharitable world, be branded with undeferved infamy. For how few are there in our day, who entertain the fentiments of a late noble author, " Con- " vinced as I am (fays he) that every man •* has his failings, and that few are exempt I 86 EVERY MAN ..ix ^^ from malice, I Ihall never be ready to " confirm a report to the prejudice of my '^ neighbour's honour ; for if he proves Y guilty, I Ihall be forry to increafe the ^^ burden of his crime by my refle(5tions; *' and if he is found to be innocent, I ^^ Ihall be charmed to think that I was <^ not of the number of his calumniators." Chesterfield. To confirm the obfervationslhave made in the preceding fecftion, I am now at li- berty to lay before the public a fhort ac- count of a tranfadtion between a broker and his principal in the year 1761, which has hitherto been fuppreffed, out of ten- dernefs to the principal, lately deceafed. The principal, a Weft India merchant, having fuftained great lofTes in the courfe of his commercial connexions, fell upon the expedient of jobbing in the Alley to retrieve himfelf. With this view he em- ployed his broker, about the month of Ja- nuary, 1761, to buy for him a very large quantity of the current fubfcription of that HIS OWN BROKER. 87 year, I think 70 or 80,000, for the fol- lowing month, having, as he thought, fuf- iicient grounds to imagine that a peace be- tween England and France would foon be made, and confequently that all the funds would rife confiderably. The commiflioii was '^x^cuted, and it appeared afterwards that the 'broker^ on the flrength of his principal's intelligence, bought largely for himfelf : the month of February ended, no peace took place ; the bargain was conti- nued on for March, and the difference (the price being againft our adventurers) was paid in the Alley : March, April, and May, proved ftill more unfuccefsful; a coolnefs between Mr. Pitt and Moni. de Bussy, (the Frenchman having the Spanifh- pro- mife of fuppoit in his pocket) lowered all the funds confiderably, and the broker now beginning to fufpedt his friend's intelli- gence or judgment, after receiving frora him the drfference for May, turned over his own feparate bargain to him : ^ bus our principal became more deeply engaged a$ EVERY MAN for June, and the lofTes he had already paid for the differences through the pre- ceding months, between the price he bought at, and the price at the end of May, amounted .to fome thoufands. June and July produced the fame effedt ; then the difference to be paid by our prin- cipal amounted to fo large a fum, that he could not furnifh it in cafh, and there- fore for this month's fettling he gave notes of his hand to his broker, which were re- ceived by him at that time as cafii, nor did he make the leaft objedtion to them, but declared to him that all was adjufted, and his account continued on for Auguft, In the courfe of that month, the profped: of peace revived, and fuch was the na- tion's opinion of Mr. Pitt's abilities, that conceiving he muft make a moft advanta- geous treat)^, the funds rofe confiderably, which gave our principal an opportunity, by felling at the then advanced price, to clofe his account, and to recover the greaieft part of what he had hitherto loff, ■ HIS OWN BROKER. S9 and faithfully paid to his broker for dif- ferences, llefolved now to dabble no more in the Alley, and convinced of his error, be communicated his intention to his family ; fnatched up the News-paper of the day, and drove away to find his broker ; but, gracious heaven ! who can defcribe his agony, when the perndipus wretch told him, he had no fubfcrlption of his to fell ; that ever fince our principal had given notes inftead of caih, he had no account open for him at Jonathan's — for his brother brokers infilled upon clofing it, and would not give him credit to continue it on for Auguil. It was in vain to remon- flrate, no redrefs could be obtained, but by applying to the laws of the land ; an injundlion was obtained to prevent the circulation of the notes flill remaining in the broker's cuftody, amounting to many thoufand pounds; and a fuit was com- menced againft him in the Court of King's Bench for perjury, in his anfwer to a bill that had been filed againll him in the 90 EVERY MAN Court of Chancery, to dikovr?!-. for what •valjable conficleration tbf :e notes b.ad been given. The author of this atife •was confuked in vhis cafe, on the ,: .lureof the fraud, and he ioon found the deceit. of the whole bufineis : it evidenii}* sppeared to him, that tie broker had finaUy fettled and adjuited the whole account in Ma\-, when he pretended to turn over his own private bargain to the principal ; that if fcrip (the fubfcription) had rifen in June, he would have given him the fame anfvver he gave him in Auguft, viz* that he had none belonging to him ; but as it kept falling every month from May to Auguf^, he continued to charge aqd receive the differences, as if ,he had flill had the con- trails fubfifling at Jonathan's ; a»nd in- ftead of paying ihem, as he alledged in his anfwer, to his brother brokers, it plainly appeared by the indorfement of thofe notes he had negociated, and by thofe remaining in. his hands, that he had kept the whole for himfelf, amounting to. HIS OWN BROKER. 91 14,000!. The caiifc; never came to a trial, being put off one terrri for want of one of the broker's books, viz. for May, and before the next, the gentlemen of the Alley, to avoid the expofure of this piece of iniquity, compromifec. the zftim with the principal ; and as a proof of the fraud, the notes not negociated, were im- mediately given up. To this inflance, another was added in the year 1776, when a very capital bro- ker, in conjundtion with a quondam ban- ker, drew in a naval officer to job for a confiderable fum in India Stock. The bait held out was, a confiderable rife to happen upon an accommodation between Great Britain and her Revolted Colonies, This' defirable event, they afTured him, would be very foon accompliflied. In the mean time, the bankrupt banker, who had turned jobber, drained the of- ficer's purfe for money to pay the differ- ences, the flock conflantly falling inflead ©f rifing, befides which > they made him 92 EVERY MAN in future months, indebted to them a con- fiderable fum ; at length, when a rife came, wh4ch would not only have fet the officer clear, but have produced a large balance in his favour, .the broker became a Lame Duck, the friend pretended that he had long before been infolvent, and both had the impudence to menace a fuit againft the officer for their pretended debt due from him. But fortunately for them- felves, they were prevailed upon by their own attorney to defift, and the poor de- luded officer, on his part, was obliged to fit down quietly with the lofs. In ftiort, the jobbing brokers are the only perfons, who have been known to raife fortunes by jobbing, all the lojing ac- counts being for their employers, and all the zoiMning for themfelves. But, in order to demonftrate this more clearly, it will be necefTary, in the next place, to give an account of the tranfac- tions of the professors of the art and myftery of i^ock-jobbing, who, like the HIS OWN BROKER. 93 members of other colleges, have different Degrees, according to the extent of their genius, or the length of tinfie'they have belonged to the fociety. At the Stock Exchange there are Servitors, Novices, Pupils, Tutors, and DoEiors ; the latter of whom are eaiilj'' known by their pride and arrogance, which breaks forth upon every occafion into declamations againft frejl)-rnen or novices i and in praife of their own fuperior fkill and dignity. — If any of my readers have ever employed a Dodtor in the art, they will eafily recoiled: fome fuch advertifements of his fkill, as this — *' 1 am alvyays to be found in the very *' worft times, and know how things *' ftand, and the trim of the houfe, bet- ^< ter than thefe young boys, that live but ^< a few days in the Alley, and then arc ** heard of no more ;" — which means only, that they can (have clofer than the young ones ; which may be taken either in a literal, or a figurative fenfe, for more than one of the principal brokeis in the 94 .^ .EV^ERY M'AN Alle}^, at the time of publiihing the firft edition of this trad, had been barbers. Tutors are thofe who take Novices for their Pupils, and finding their ignorance (owing to their innocence) make bargains with them, and bring them into credit with the houfe, in which they fuifer therti to go alone, as foon as they have tricked them oat of half their fortunes, for teach- ing them an art, which, if they have any honefly left, they quit as foon as they, know- the infamy of it, leaving their tu- tors to enjoy the fruit of their guilty in- flrudtions.— The tutorfhip has generally been in the hands of Jews, and, with' great propriety, one Aaron was for many years high-priefl. Servitors are thofe who wait on their makers commands, and are ready to do all the dirty bufinefs they order them; and which they do not. care to ap- pear in themfelves ; foch as afTerting — that flocks were done at a different price than they really were, at any particular hour— ^or buying and felling under-hand 5 HIS OWN BROKER. 95 for their mafters, a large quantit}' of any of the funds for the refcounters^ in order to raife or fall the flocks at pleafiire, which" bufinefs they tranfaCl with a brother Servi'-. tor, who is in the plot •, and, after the end is obtained for which thefe bargains ^vere made, they are cancelled, and the bounty of the mailer is equally divided, which^ by the bye, is but very fmall ; and there- fore the Servitors are to be dlliinguifhed by their ihabby appearance, and their fre- quenting the door of the Stock Exciiange, which they can feldom afford to enter. I rcQiember indeed one exception, which was of a favourite Servitor, who was one morning employed to tranfad: fuch part of a great Doctor's bufinefs, as he himfelf could not perform for want of time; and his allowance, for this overplus on the other's bufinefs^ amounted to fifteen pounds ileriing; by this it appears, that jobbing muft be the principal fupport of, and what enriches the gentlemen of the Alley ; for it 15 next to incredible that any broker 56 EVERY MAN (who was only moderately fond of wealth) ihould really transfer in one morning, be* twixt the hours of nine and twelve, fo much flocks, or annuities (for which he has no more than two fhillings and fix- pence per cent.) as would enable him to fpare his Servitor fifteen pounds : but when once a jobbing account enters the lifts, as there are no bounds to this fort of gaming, it is not to be wondered at, if, on a fettling- day, after any refcounters, a Dodtor of the Alley fhould be obliged to take a Servitor at the rate of twenty pounds per diem*.: ♦ After the publication ot" the fourth edition of this work, a gentleman communicated to the author the following anecdote — That there was an office not far from the Exchange, kept by two brokers, whofc commiffions for one year amounted, upon a mode- rate calculation, to a hundred pounds, one day with another; and fo poiitlve is he in his computatioR, that he adds, he would willingly have rented the profits of their office, at the clofe of the war, at that lum, every day from the firfl report of a peace. Thefe gentlemen are now elevated to the dignity €t" bankers. HIS OWN BROKER. 97 another part of the Servitor's bufinefi is, to make and carry paragraphs of falfe in- telligence to the printers of public papers, whom we often find confeffing that the/ Were impofed upon fn particular articles of news : it were to be wiihed that this spology was ahvays true; and that the public might have no room to fuppofe, that for five fliillings,they infert any piece 6f intelligence, without conildering the confequences. The gentlemen of the Alley have like- wiie their Terms and Vacations ; but there are no ftatcd times for thefe in general, though, in tiaie of war, we may fix the commencement of their principal term to the beginning of November, or the meet- ing of Parliament; and its duration to the end of the foilov/ing March, or the time of circulating the Minifler's Budget in the market. In this Term, there are feveral forts of bufmefs to tranfadt, v/hich keep the Alley m a pcrpetvral ferment withput the leait re- F 9S EVERY MAN hxation ; infomnch that even many of the Dodtors are obliged to lay up their equi- pages^ and others to fend their high-bred Lnnters to the livery ftables. The very licight of Term is, a few days before the drawing of the lottery, when thofe who have contradled to take, or are already pof- fefTtd of more tickets than they can pof- fibly hold (in the language of 'Change- Alley) begin to open their budget, or to let the cat out of the bag, and thefe may not improperly be fl:yled the Bulls, plain- tiffs ;-~and the oppofite party, who have agreed to deliver a quantity of tickets without being poflelTed of them, the Rears, defendants. The caufe is de- pending nine months, before it comes to a final iliuc; there are indeed little trials of &ill betwixt the Bulls and Bears at the end of every m.onrh, from February to November, becaufe for each of thefe months, there are contra(fls m.ade for twenty times as many tickets as there are in the whole lottery ; but the grand and HIS OWN BROKER. 99 iinal decifion is on Friday before the iirft day of drawing, when that is appointed by the Lottery Ad: to be on any Monday ; but when it is ordered to commence far- ther on in the week, then the day of fettling at the Stock-Exchange is altered, fo as to make the fettling of accounts happen a day or two at mcfi; before the drav/ins; bee^ins. It would be tedious, and indeed in fomc meafure needlefs, to give more examples than one of the chicanery pradlifed by the ProfcfTors of the college, and of the va- rious artifices they make ufe of to impofe on each other, and the public in general ; becauie the fame meafures muft be pur- fued, 3fnd the fame tricks played, for all jobbing accounts, in every different branch of the funds: for which reafon I lliali con- fine myfelf to a jobbing account in the lot- tery, as being that which afFeds a larger body of the public than any other; for there are numbers who annually adventure in Lotteries, who know nothing of the F 2 ; 100 EVERY MAN other funds ; and probably have no pro- perty in them. As a profe writer, and only a bare nar- rator of fads, I cannot properly call in the afliilance of the fairy train, nor yet con- jure up aerial fpirirs to convey my readers through the jarring elements to the place, whcre^ for my own convenience, I would have them tranfported ; I fliall therefore only (imply in treat them to awake the powers of their imaginations, and by their Hrength, fuppofe themfelves conveyed to the famous college of jobbers, not inferior to any college of jefuits; where I m.uft leave them to recoUcdl, and call up the idea of Bartholomew Fair, or fome coun- try wake, that they may have a juftrefem- blance of that horrid din of confufed voices, and that motley appearance of various chara<5Lers, which prefent them- felves to their view, at their entrance into the college — while I for a mom.cnt paufe —to confider in what language and form 1 fhall evplain the fubjeds of their wild uproar. HIS OWN BROKER, loi Shall I throw it into dialogue ? No; it is impradiicable; for it confifts of fuch a medley of news, quarrels, prices of dif- ferent funds, calling of names, adjufling of accounts, &c. &c. continually circulat- ing in an intermixed chaos of confufion, that it will not admit of digefiing into that pure, decent method of expreffing a fami- liar converfation • Shall I invoke the comic mAife ; and in her lively vein of humour expofe the de- formity of thefe fons of iniquity ? No ; the chara^flers are too low, the fubjed: too mean, and the plot too dirty, iinlefs I was writing fot a (IroHing company, and the piece were to be reprefented in a booth on a common, in the wilds of Kent. Since then no borrowed ftyle will fuit it, nor no chara(flers aptly reprefcnt it, let me give the explanation in their own language; and only inform fuch of my readers as are not likely ever to fee the Stock-Ex- change in reality, that their nonfenfical medley of difcourfe nearly refembles the F3 xoz EVERY MAN advertifements of the once famous orator Henly^ a fpecimen of which I have pro- cured, that the public may judge for themfelves *• * Jan. 30, 1756. K. Charles I.'s Chnrge to Henly's Jury ! At the Oratory K. GEORGE^s Chspel Sunday — N. B. Laft Lord's day two or throe puzzlcpatesfaid — I had too much Divinity, on the Thomas's and John's — was too grave — Brethren Prcfbyteiians fay — Religion is a grave Thing ; and 1 am not grave enough : Split the difFerence, but don't fplit me ; Blefled K. Charles I. in the Com- mon Prayer-Book ; Ora pro nobis ; And for thy Grand Nephew K. George ! And my Reafons; Loyal to the Hilts! And God's Providence and Man's Duties, — I hope that is grave — the Bible 1% wife and merry, — whether Ghrift was for fading or againft it, Louis's Challenge and St. J's's Anfvver — GenI, Tohnfon refi^n'd — Pr. NafTau's heart ! — Mr. Whit- lie'd's Vi6lory — —The art of Starving, and th« Brightell fliort Stripes, all for the Good of the People, who, therefore, will be for me, and I'll beat their Impoverifliers — after that the befl in the Houfe — 1 0,062 — Henly ! be boldcfl in the Land of Reafon — and Speech on Speech— difpatch thy Foes --Blood for Blood » HIS OWN BROKER. loj The grand fcene opens a little after tvvelv^e at noon (at which time the transfer books of mod of the offices are fliut for the day) and generally the a6Vors hold forth in the following manner, and almoft all at once : "Tickets — tickets — India flock for ^ the opening— Navy bills — Bank flock ^ for the refcounters — Long annulries — ^ Here the waiter calls, Chance— Chance ^ — Chance; Mr. Chance is not here, Sirj ' he is over at his office — Here, tickets ' for Auguft — Omnium gatherum for < September — Scrip for the third pay- ^ ment — Three per cent, confols— /7^;v ^ the beef -headed Mr. Eye-Tony zvhifpers a 'friend, but is overheard, They are all ' Bulls by G— d, but I'll be d^i.\ if they ^ have any of my flock ; I'll go out of ^ town, and not come near them till the * refcounters — Here, Long annuities ; 'who buys Long annuities? — Tickets ^ for the drawing — Well, what have you ^ to do in tickets for the drawing, Mr. J^ Mulberry ? I am a feller of five hun- , F4 304 EVERY MAN •* dred, Sir — And I am a buyer, Sir; but " pray at what price ?— Wh}', as you are *' a friend^ Mr. Point-royal, I fliall give '* you the turn ; you fhall have them at *' fourteen =^\ llie turn, Mr. Mulberry ! *^ why do you think I do not know what ** I am about, as well as if I v>'as felling *' pins or needieS;, or drawing patterns *' for ladies rufiies ? they are all fellers at *^ thirteen. — Well, then, you fhall have *' them at thirteen — I will take them at «' twelve, and no otherwife — Well, you <* ihall have them^ put them down (for *' the drawing, mind) but d— n it, Tom, *« where did you get that pafte wig? « Why, you fon of a b— h, it is as good *' as your mop India ftock without *^ the dividend. Have you a>,y thing to' " do in India ftock, Monfieur Sham-it? * They mean twelve pounds, or thirteen ixjunds fourteen fliillings, as the price is; but this fliort ir.e- thod has been improved to -lave the gentlemen's breath, otherwife it would be impolTible for their lungs to hold out. HIS OWN BROKER. 105 *' Non pas, Moniieur, bien oblige — I *' have been talking French fo long to ^' Sir Harrv Travel-fick that I foro;ot •^ myfelf — I have nothhig to do, Sir ; •' afk my partner; I am but juft come ** from Tunbridge Wells, (angrily) — *' India bonds ? who buys India bonds ? *^ — no buyers in the market ? — Weil, *' Mr. Backward, where fhall we dine to- *' day ? — You have never a pig in (lore, *^ have you ? No^ no, Mr. Sharpfer, tliefe *^ are bad times ^ I have made nothing of *' it this term yet ; but hufh, don't talk *^ of pig, for here comes the proud Dr» ^' Low-pifs, Vv^ho never looks pleafant at *^ the bell, and fhould you mention fvvine's *' fiefh in his hearing, we fhall make him «^as furlv as Old Nick -^— Enter Kic * In the famous South Sea year, a haunch of Tcnifon fold for five guineas, which was a proof of the luxury of the jobbers of that sera — IMr. Back- ward is an inflance of luxury in another kind -, h« is fend of a pig prepared for his table in the follo\y- F5 io6 EVERY MAN *' Cot — and Mr. Verjuice, from Spring- *' gardens, with each a book in his hand *' — Here, Every Man his own Broker, I *^ am a feller for money — and I am a fel- ** ler for time — to them, Mr. Skinit, for. " merly a butcher^, Mr. Onion, Sam " Dangerlefs, Joe Dirtyface the baker, ^^ and Tom Steel the common council- "*' man, who all at once demand, what •^ is It > Any new fubfcription, Mr. Ver- *' juice } I buy, 1 buy — No, no, gentle- *' men, it is not fo good a thing; it is a ii (1 — d impudent libel againfl: all the *^ members of this facred college ; and I ** would give all Spring-gardens (my real *« eflate, gentlemen) to fee the author well ^' punifhed for his infolence : here he gives •^ diredlions how to buy and fell flock ing manner ; it muft be taken from the fov/, fooii after it is littered, and laid on a foft cufiiion by the fire-fide, where It rniiil be fed with Naples bifcuirs and cream, till it is a fortnight old, a.nd then 'be Dvhipp^'d to death raid roaficd. HIS OWN broker; lof *^ without a broker; and lays open the *^ whole of our tranfadions; and all, for- ^^ footh, becaufe he has loft his mone^ ^' amongft us — Thoufands have ihared the '« fame fate, why fhould he make fuch a ^^ noife about it ? or why injure all to be '^ revenged on a few ? 'twas neither you ^^ nor I that ftripped him; 'twas Aaron the *' Jew, Bob FalftafT, old Hodge, and two- ^* or three more — Well, pray don't be in a ** pafTion, gentlemen j pray what are you ^' going to do with the books ? Do! why ^^ fell fhem at a low price; you know that's: *^ the only way : and then tell all our <^ friends out of doors, what curfed Huff ic '^ is ; and that it vvas done here at — how " much, Mr.Skinit? Why 1 will give you ^' ten pence nzoncy — both, You Ihail have ^' them — —Calls out^ Done at ten pence, ** gentlemen — Pray get it put in Chance>'s ^< lift, 'twill damn the book effedually ^ * Saturday, May 30, 1761. — Mr. Chance was a- very worthy good-natured man, who arrived at the* fcigheft pinnacle of fain^ by diHribuung the fsvoui* F 6 io8 EVERY MAN ^* — Here, who'll fell a hundred for time ? << — Sam D anger lefs replies , I am a feller of *' a hundred for time — you fhall have *' them at nme peiue for September next " — I will take them at eight pence — You ** fliall have them — done at eight pence ^ •' gentlemen, for September — A good bar- <^ gain ; i fliall get them at the flails for a *^pe7wy^ long before that time.— —Tom '' Steel the common councilman now in- ^* terpofes, and makes as formal an ha- " rargue as if he were pleading in the '■^ city parliamenc for fome darling pri- " vilep'e. " Gentlemen, you are highly in the '* wrong to take fo much notice of this *■' paltry performance, or its author; trull ** me, the bell thing you can do is to let •f fortune, like his miluefs, at Hazard, fomedmes giring ic.,>Ovl. to blockheads, and to men of the jrcatell merit, a blank. Unluckily for the gentle- men in cjueilion, he did not put thq Alley price of Ev^r^ Man hii oivn Brclicr^ in any of his lifts.. HIS OWN BROKER. 109 " him alone ; the thing will die of itfelf ; " befides, he can really do us no harm, for " we are fo flrong a body, that he may as ^^ well attempt to beat down the Monu- " ment with an old Shoe-Horn, as to de- ^^ ftroy our college ; we are too well fup- *^ ported : leave him to me, pafs quietly *' by him in the ilreets, and do not flare *^ at him as if you faw a monfler (nor " don't you, brother Eye-Tony, call *^ people out of their fhops to leer at him) *' for that only marks rage, and a con- ** feffion of guilt : — I have a fafer and «^ more quiet way; it is but arming our *' under -fecretary of Jlate * a gain ft him, *• and this moth vvill foon be crufhed. I ^' can add no more, for here are fome ■^ In the courfe of Lord North's glorious ad- jniniftratlon, INIoniieur Sham-it, mentioned in page 1C4, was tranfplanted from the Alley to the^ fecretary of frate's office, for what fervices the noble lord who promoted him belt knows : h^ leal name was Anthony Chami^r. 310 EVERY MAN *^ Grangers coming in ; therefore let's '^ adjourn, the fubjedt — but, by the bye^ *' zvhijpers, I have voted for a filk gown *' to-day, I hate to be numbered among " the common livery. — Here, old an- <^ nulties without the dividend Enter '« Mynheer Vander Doubleface (with a ^^ packet of letters) — Two mails from *' Holland and three from Flanders. Ik '^ fal never go through myn bufinefs, 'tis " too much ; (looking round him) wat «' has my news fent all de gentlemen to «^ de pofl-huis — well — this is ongeluckr,. *^ for ik muft buy een groot deal of ilock, <« dar is heel good news — de Euftatia is « taken." Having thus given a fpecimen of the daily tumult at the Stock-Exchange, I am to apologize for letting any thing fo very low appear in print, by affuring the public^ that nothing could have induced me to have given it a place, but the defire of faewing them what a trifling fet of people they are in fub'iedtion to ; for I call it HIS OWN BROKER, m fubjedlion, when fo large a body of people, as that part of the public who have concerns in the funds are, tamely fubmit to think, fpeak, and adt upon the judgments of thefe gentry, I fhall now return to Mr. Point- royal, and juft exhibit a leaf or two of his job- bing book, before I take my leave of him. Lottery Tickets for the Drawing, Bought, viz, » . to take 200 of Levy, at 151.15s* 100 of Benjamin . 12s. 100 of Solomon . 14S» 100 of Reuben . iSs. 500 of Mr.Mulberry ^53. 1000 Sold, ... to deliver 6GotoMr.Buckat 15I.5S. 3C0 to Mr. Skin-flint 8s. 200 to Dr. Wool I OS. 400 to A. Avarice 1 is. It appears by this account that Mr. Point-royal is a Bear for live hundred tickets ; that is, he has fold five hundred more than he has bought; confequently he wiihes they may fall ; and as a means 112 EVERY MAN to bring it about, he runs up and down the houfe, a few days before the drawing, declaring, that the tickets do not go off, that he has pafTed by all the offices, and did not fee one cuftomer in any of them ; and, in fhort, that the price muft come down. The reafon of this condud: is ob- vious. Tickets at the time of his ading thus, are confiderably above the price he has sgreed to deliver at ; and Ihould they continue fo till the drawing, he will be obliged to buy five hundred to adjufl his account at a much higher price than he has fold at. — This is only one account, and that a fmall one; but let us fuppofc the accounts of the greateft part of the houfe to Hand thus, and tiiat the majority- are Bears; it is upon the difcovery of this, that the debates in the caufc begin to grow v/arm, and the counfel to rail at each other, and brow-beat the evidence. This produces a fcene of amazing con- fufion and uproar; and the public are ebligcd to give that price for tickets ip. HIS OWN BROKER, uj the'ofiices, which the fentence paiTed in the college fixes on them ; thus, for in- ilance; if the Bulls get the better of the contefl, by holding their tickets to the lad, and oblige the Bears to buy on their own terms, then the price of tickets rifes confiderably, not from their intriniic value, but from the artificial fcarcity in the Alley : but if, on the contrary, the Bears giin the vi(flory by a feeming in- difference, and by raifing a thoufand artful ilories, which frighten the Bulls, and caufe them to fell at once, then the price falls, from the market's being over- ilocked, and the public m\\ thereby pro- cure them at a low price. I vvould there- fore advife all private adventurers eitiier to buy very foon after the firft coming out of the tickets, which generally is in June or July, or e\(e to wait till the very morn- ing of drawing, and buy an hour or two before the wheel goes round. It would puzzle my readers to divine the method of fettling or adjufling (as they 114 EVERY MAN call it) fuch an account as Mr. Point- royal's ; and if I were not to give a flight iketch of the manner of doing it, it would be thought incredible, that it Ihould ever enter into the heads of any fet of men, to invent fuch a perplexed and intricate form of adjuiling an account. For the fake of brevity, and to render myfelf as intelligible as poffible, I iliall take only one article on each fidQ of Mr. Point-royaFs account. Againfl the day of fettling he has made out, what he calls, his lill, with which he appears in court, and once more accofts Mr. Mulberry — Sir, I am to take five hundred tickets of you, do you deliver them ? No, Sir. — Who have you got then ? Let me fee — I have got Mr. Sham-it ; go to him for four hundred, and fee if you can adjufl that, while I fee who I have got for another hundred — goes on, I am put to you, Mr. Sham-it, by Mr. Mulberry, for four hundred tickets. Well, Sir, you mult go to Dan- gerlefs— ^0^5 on^ Mr, Dangerlefs, can you HIS OWN BROKER, ii^ deliver me four hundred tickets for Mr. Sham-it ? Yes, Sir ; are you ready- to take them ? No, Sir, I am to deliver to Aaron Avarice calls^ Aaron Avarice, here; will you take your four hundred tickets of Mr. Dangerlefs ? No, Sir; I give ' you James the fon of Zebedee — Zounds, Sir, that won't do, he is Mr. Mul- berry's partner; and I am to take of hini —Well then, let me fee, oh ! deliver them to Mr. Coal-hole — aye, aye, take 'em to Mr. Coal-hole, and there they'll fettle. In Ihort, Mr. Coal-hole agrees to take them, being in want of four hundred for a cuftomer, (for he is no jobber, but when obliged to adt for a principal) : but here another difficulty arifes about the price they are to be done at ; Mr. Coal-hole is to pay for them, and will take them at no other price, than that which he agreed for with Aaron Avarice; w^hich happens to be a great deal lower than Mr. Dangerlefs fold them at to Mr. Sham-it; at lafl, however, Mr, Coal-hole, being a good- ii6 EVERY MAN natured man (and knowing Mr, Sham-it to be a Dodtor, who has never been a Lame Duck) agrees to pay for them at twelve fhlUings, to fatisfy Mr. Dangerlefs, who always takes care to be on the fure Thus we have adjufled four hundred of Mr. Point-royal's tickets ; and happy will it be, if he feitles any more fo eafily ; for fometimes thefe gentlemen put one an- other about from man to man, till they have gone all round the houfe.^^ — The method of entering thefe accounts when adjufted, is to the full as abfurd ; and would afford no entertainment or in- £lru(5lion, for which reafon only I omit it. The remainder of the Lottery Term * Dangerlels is fo lame a Duck, that he has brcike both legs three or four times, and has been twice trepanned; but, by the help of good fplin- tering, he is at lafl pcrfe^fllyreliored, and enjoys his bottle and lafs as gallantly as the fii il peer ia the laud. HIS OWN BROKER. 117 is employed in buying and felUng of tickets during the drawing. Having thus given an account of the bufinefs tranfacled at the beginning of term, I fnall only obferve, that all is pretty quiet after the drawing of the lottery is over, till the time of raifing the fup- plies for the fervice of the new year, throws the whole houfe into a frefli ferment; but for an account of this, I niuil refer my readers to Chap. IV^ and fhall conclude this, with relating their manner of fpcnd- ing the vacations. The fpring vacation generally begins in April, when fuch of the gentlemen of the Alley as are in town, pafs their time at the Stock-Exchange, in buying and felling of green peas, mackrel, he, by way of piddling, to keep their hands in at jobbing, till the terms comiS on again. Tlie method of playing at this gsme is, to buy or fell one hundred pecks of green peas for the earlieft feafon, or firft coming in^at a particular high price; and the way ii5 EVERY MAN of adjufling the account is, to fend to Shut- tle worth's to know the price of theiirftpeck of peas that were brought to market; ac- cording to which the buyer or feller at the Stock-Exchange regulates his account,and pays or receives the difference betwixt the price they were done at by him and his antagonift, and the price at market. The mackrel bargains are generally for one thoufand, at their firft coming in, and arc adjufted much in the fame manner; for as foon as they are cried about the (Ireets, the contending parties buy as many as they want for a dinner ; and this fettles their accounts, and furnilhes them with a deli- cate repaft. Now as thefe gentlemen fol- low only their own weak judgments, or the price of the precedent year, in this fport, I ihould think an underllanding gar- dener, and a fAilful fifnmonger, might have the beft of the game : for the one might give a better guefs by obferving the back- wardnefs or forwardnefsof the fpring, and 5 HIS OWN BROKER, uj the other by knowing the run of the market at BiUingfgate. Another manner of fpending the vaca- tion is, in infuring on the lives of fuch un- fortunate gentlemen, as may happen to fland accountable to their country for mif- condudt. I am not willing to diflurb the allies of the dead, or I could give an in- flance of this cruel paftime, the parallel of which is not to be met w-ith in the hiftory of any civilized nation : but 1 hope v/e fhall hear no more of fuch detcflable gam- ing; and therefore, as a fcene of this kind, fully laid open, might aflonifh, but could not convey inllrudtion, humanity bids me draw the veil, and not render any fet of men unnecefTariiy odious. A pradlice likewife prevailed of in- furing the lives of well-known perfonages, as foon as a paragraph appeared in the news-papers announcing them to be dan- geroufly ill. The infurance rofe in pro- portion as intelligence could be procured from the fervants, or from any of the 420 EVERY MAN faculty attending, that the patient was in great danger. This inhuman fport affedied the minds of men dcprelTed by long fickncfs ; for when fuch perfons, calling an eye over a news-paper for amufement, faw that their lives had been infured in the Alley at po per cent, they defpaired of all hopes ; and thus their diffolution was haftened. But, to the honour of the principal merchants, un- derwriters ; they caufed an advertifement •to be fixed up at Lloyd's Coffee-houfe ; declaring, that they would not tranfad: bufinefs with any brokers, who fhould be engaged in fuch infamous infurances. Infuringof property in any city or townT that is befieged, is a common branch of the infurance bufinefs, in time of war; but ingenious gameflers, ever iludious to invent new, and variegate old games, • have, out of this lawful game (for in- furance in general is no more than a game at chances) contrived a new amufement for the gentlemen of the Alley ; which is HIS OWN BROKER. lat •for one perfon to give another forty pounds, and in cafe Gibraltar (for in- itance) is taken by a particular time, the perfon to whom the forty pounds are paid, is to repay one hundred pounds ; but if, on the contrary, the fiege is raifed before the time mentioned, he keeps the forty pounds. In proportion as the danger the place is in of being taken increafes, the premium of infurance advances; and when the place has been fo fituated, that repeated intelligence could be received of the pro- grefs of the fiege, I have known the in- furance rife to ninety pounds for one hun- dred. A fine field this opens for fpread- ing falfe reports, and making private letters from the Hague, 8cc. but how infinitely more harmlefs to trifle with pro- perty, than to affedt the life of a fellow- fubjed:, or to injure him with the public, to ferve a private end ! Of fham infurances, (that is to fay, in- furances, without property on the fpot) made on places befieged in time of war,' G f22 EVERY MAN foreign minlfters, refiding with us, have made confiderable advantages ; it was a well-known fadt that a certain ambafTador irifured 30,000!. on Minorca, in the war of 1755, with advices in his pocket at the time, that it was taken — our government did not get the intelligence till two da3^s after this tranfadtion, it was the third, before it was made public, and thus, the ambafTador duped our people, who con- tinued to accept premiums till the third day, I cannot more properly clofe this chap- ter, than by leaving upon the minds of my readers this felf-evident inference from the whole : That it is almoft impoflible for any broker, who is a jobber (and there are but few that are not) to give candid, impartial advice when to buy into, or fell out of the public funds. HIS OWN BROKER, ijj CHAPTER III. Of the method of transferring and accepting^ or of buying into^ and felling out of the public funds s giving full directions hoiv to tranfaSi this hufi- nefs without the afjlfance of a hroler.-^Form, of, receipts given en transferriftgjloch.^— Explana- tion of the meaning of i, |, f, f, being part of the prices annexed to the lijl of the funds printed - in the news-papers. -^A fhort method of cnfl'tng up any odd quantity offockj at the price of tl^ fame per cent. — Laws in force to oblige the clerhs of the Banhy a?id ether public offices, to aid and affifi all manner of perfons whatever to transfer " their property in the feveral funds ."^Penaify oil refufaL'^^Laws in force relative to b'rokers."^^ Advice concerning draughts on bankers-^afid a- particular account of the nature and power of letters of attorney for transferring property in the funds y and receiving dividends. — Frauds defcribed which may arifi from granting theft letters of attorney. — Propofal to augment the in" comes of the clerks in the transfer offces. THERE are numberleis tranfadians in the common courfe of bufinefs^ which are in themfelves extremely eafy to perform ; but which fome, through ig- G 2 124 EVERY MAN norance, others, through prejudice, and many more, for want of refolution, com- mit to the care of others; and affign them a falary they often can but badly fpare, for the execution of that, which, with a little induftry and attention, they may be mailers of themfelves in a few days. Of this number is the bufinefs now nnder our confideration, which by the force of cuftom has been configned to the management of a fet of men, who were unknown to fociety till within the prefent century \ and who, by way of gratitude, very fairly attempted, in the year 1720, to turn their mailers out of doors ; or, in other words, who, not content with their Hated allowance of two and fix pence for brokerage, laid a plan for appropriating to themfelves the whole fortunes of their benefadlors, in which, for a Ihort time, they fucceeded to a miracle ; and they have ever fince been piddling with the public property, and enriching them- HIS OWN BROKER. I2j felves at the expence of the innocent and unwary. It is indeed very hard to account for the folly and madnefs of the public, whicli has given to thefe their lowly fervants, an almoftabfolute power over the whole mo- nied property of the nation. Yet fuch is become the cafe. A broker will not tranf- adt any bufinefs in the Stocks, but with another broker, and they are to fettle to- gether as they pleafe^ the value of every man's property in the funds. If, befides the government annuities," and the other transferable Stocks ; India bonds, Exchequer, Navy, and Victual- ling bills, and all other public fecurities for money are confidered as paflingthrough their hands, the extent of dealings, now- lying at the mercy of thefe people, mud aftoniih all thinking men, efpecially as it is well known that they form combina- tions fufficient to terrify all ftock-holders, and carry on fuch fcenes of jobbing as are G 3 126 EVERY .MAN highly detrimental to trade, and to both public and private credit. ' Let it then be every man's care, who has any property in the funds, to prevent the increafe of the pov/er, and influence, as well as of the number, of thefe in- vaders of their property, by boldly and manfully refolving to tranfacft his own buiinefs. Do you v/ant to buy ? exa- 2i:!ine firft the funds and their prices in the daily papers, or if it fuits you better, fearch the lifts already mentioned in- Chap. I. and when you have determined what fund to buy into, (concerning the choice of which you have likewife my opinion in the fame chapter,) go boldly to ihe office where the fund you have made choice of is transferred, and be not dif- mayed at the wild uproar and confufed Doife which will at firft flrike your ado- nifhed fenfes — many of you have fup- ported more for your amufement, on the firil night of a new play ; and others, at ihe nocturnal revels of the choice fpirits; HIS OWN BROKER. 127 and will you not endure this temporary inconvenience for the valuable purpofe of becoming the managers of your own pro- perty, and to fave yourfelvcs the expencc of brokerage ! Advance then, and attend a few minute^ to the confufed cries that refound from all quarters ; and you will foon find what you want — a feller of the fum you propofe to buy — you have only to demand the price,- which, if there has been no particular news' to occalion a fudden variation, you will find, by comparing it, to be nearly the fame with that of the preceding day ; if he is a common feller, he will name you the whole price as 60 J, or whatever h' happens to be, for three per cent, con- folidated annuities ; but if he is a Dodtor, or Mailer of Arts in the Alley, he will only tell you the fradtion of the price, viz. 4- or 4 ; and if he finds you do not know the principal fum, he will thereby be allured that you are not a broker, and will probably quit you in fearch of one, G 4 128 EVERY MAN for his intereft is, to deal with none bnt brokers, as your's is, to do your bniinefs without them ; therefore let him go, you will foon be accoiled by fome other feller, who perhaps is not a broker, for there are plenty of fuch every transfer day; and it is your bufinefs by adding one, to increafe the number. — Should you wait a little, and no perfon offers to fell you, venture to exert yourfelf, and call out lullily, that you are a buyer of the fum you v;anr, whatever it be, — truft me, you will find very little difference betwixt the articula- tion of the few words requifite upon this occafion, and the common afpiratio'n you are fometimiCS forced to make ufe of ia calling for your fervant, or for a coach in a fliowerof rain. — When by this means you have found a feller of the fum you want, you will, very often, be obliged to give the turn of the market, that is, if it is a doubt whether the market-price is exactly that which he afks, or rather in- clined to fall 4- beneath it, you muf^ give HIS OWN BROKER. 129 the turn of the fcale to get your bufinefs done; and this you will be obliged to do nine times out of ten, if you employ a bro- ker — the better to underftand the price, obferve the following table, which is in- ferted for the ufe of the many hundreds, who read the public news-papers, without knowing the meaning of the odd 4- an- nexed to the price of flocks : s. d. IS 26 5 o 7 6 10 o 12 6 15 o 17 6 By this table you find, that If you are aiked 57 -J per cent, for three per cent, an- nuities, it means, fifty -feven pounds feven- teen JJnllings and fix pence y which is the price you muft give for lool. fliare la them. G5 ijo EVERY MAN Having thus found the price, and agreed \vith the feller, you have only to give him your name, ftyle, or title, and place of abode* ; it is his bufinefs (as the feller) to take care of the transfer, and prepare the receipt, only do you contrive to have the jfum you are to pay ready, and as near as poffible in bank notes, {o that you may not have more than four or five pounds to pay in cafli ; becaufe the hurry and buflle is ^o great, that great inconveniences will arife in tranfadting your bufinefs, if you do not obferve this rule. If you are well known on the Exchange, and keep cafli at any * In the new office, at the Bank in Bai tholomcw- Isne, the following advertiiement is wrote on the .wall: ** To prevent miilakes in the accounts, all pcr- '* fons are defined to write on the transfer tickets, *' tht* defcriptions of the parties, and the flreets ** where they live, if in London, otherwifc they •* cannot be forwarded, the r.ame of the pariHi nor *• bciag fufficicnt." 5 HIS OWN BROKER. 131 banker's in the neighbourhood, your draught may do as well as bank notes. Another rule to be obferved is, to keep in one part of the room, till the transfer is prepared, that you may be in readinefs to anfwer to your name when called ; for if you are out of the w^ay, the clerk will not wait for you, but proceed to other bufi- nefs : the transfer being prepared, and your name called, you are to go to the clerk who has the transfer-book, who will Ihew you the form in which the feller has transferred the fum agreed for, to you, your heirs, affigns, &c. (which form I would advife you to read the firft time, that you may be thoroughly acquainted with the nature of the alignment) you will then be direded to fet your name to a form of acceptance of the flock trans- ferred to you, the feller having firft fet his hand to the transfer ; this done, the clerks witnefs the printed receipt, which the feller gives you, figned by him; an^d >vhich you mufl keep as a voucher for the G 6 iji EVERY MAN transfer, till you have received one divi- dend : the only reafon for this, that I could ever learn, is, in cafe the transfer Ihould by any means be negledted to be pofled, and Co the dividend warrant fhould be made out in the name of the old pro- prietor ; but this is a cafe that happens fo feldom (if ever) that I think no perfon need be in great pain about loling a receipt of this kind. I muft here give a caution againfl keeping thefe receipts after you have received one dividend, for they then become ufelefs; the cafhier having ac- knowledged your right in the fund by paying you a dividend, and therefore they Ihould be deftroyed ; for by people's keep- ing them in families (at their death) they fometimes caufe a great deal of confufion, efpecially among the lower fort of people; and prove great difappointments to many, who think, in finding them, they have found a treafure. They immediately ap- ply to the public offices from which the receipts have been ilTued, and the clerks HIS OWN BROKER. 133 foon convince them, that they had better have been burnt ; the fund having been fold out ; I hope, however, they pay nothing for examinations of this kind^ fince every executor has an undoubted right, at proper hours, on producing the probate of the teftator's will, to exa- mine the books of any public fund (gratis) wherein he fufpeds the teflator had any property. Having paid the fum, and taken the receipt, the whole bufinefs is tranfaded ; and this is all, with refpedt to a buyer *. * If you buy from a broker, or employ one to buy for you, you mull take great care that you %n the acceptance in the transfer-book, before you pay your money to the feller, frequent complaints having been lately made of the condud of brokers, who deliver to the purchafers the feller's receipt properly ailSgned, and take the money for the itock ; after which they run away to tranfad other bufi- nefs, and do not return to fee the acceptance figned by the purchafer in the transfer-book. In confe- quence of this negKct, the direttors of the Bank have fixed up a primed uoiice in the transfer-afiicsi. 134 .El^RY MAN Let us now explain the bufinefs of a feller, who, as has been remarked, has a little more to do than the buyer. As the largefl part of the national debt iies in the three per cent, confolidated an- nuities, and as being the cheapefl, they are the moll: dealt in, I fhall felecl them as the propereil fund in which to give my explanation of the feller's bufinefs in trans- ferring, or felling out, his property. Having found a purchafer (by the means before mentioned in my directions to the buyer) the feller muft get a piece of pa- per, about a quarter of a fheet, and write on it his own name, ftyle, and place of dated in April, 1781 ; cautioning all purchafers not to leave the acceptance of the transfers un- figned. — For no dividend warrant can be made out to the new owner of any property in any of the funds, neither can he again part with his pro* perry, unlefs the transfer-book has been properly figned by him ; though the transfer has been made to him by the clerks, and his name Hands in th« body of it with his full defciipiion. HIS OWN BROKER. 135 abode, with the fum to be transferred, the fund it is to be transferred out of, and the perfon's name and defcription to whom it is to be transferred ; to make this more clear, you have here a form in the Three per cents, which will ferve for any other fund, ftriking out only the words Three per cent. Annuities, and put- ting in its place, the particular fund you have occafion to transfer ^. * If there 13 any little drfference between one public office and another, it is not material, and ihc clerks are obliged to fet you right. 136 EVERY MAN • C/D ^ 4>J E ^ J3 » P G c ^ •4-) V 115 CO 'E <1 CO • +-» a 4-1 CO a C! d u r— i 4-> U 4-J ty—t CO 4J J-t CO • 72 Ph • r Cent, confo To an, Coal-Me <4H CM J-l B Oh 4^ 8 G ^ r:j H CO '0 •fH a HIS OWN BROKER. 137 This paper you mufl deliver to the clerks that fland neareft to, or ilnder the ktter with which your name begins,- and to which you will be diredted by the let- ters that are painted at large on the wall ; and by this regulation, and fome laws in force, but negle h or f, in the cafe, ^ where your quan- tity is larger than the ^ncQ, per cent, take the i» 8, t> or i, part of the farge fum, and throw it in, after your multiplica- tion, thus ; 58! 1056 660 ^6 the lor* of 13*, 16 : 10s. the|-niak- £' — ing f 77138 20 J.7I70 12 //. 8J40. 4 10/, /. i|6othusthefraaion« or odd eighths arci introduced. Anfvvci-;^,;; : 7 ; 8J. i H 146 EVERY MAN Purfuethls method, even when the fiim is imaller than the pv'icQ per cent, if it con- fids of two figures ; but if it confifls only of one figure, then the fhortefl way is to multiply that, by the price per cent, and to take in the fradtion, in one line. Example. What is the worth of 7I. at ^'}\per ccntf By the table already given, you know that | is 12s. ^di» therefore work it thus : 57 : 12 : 6 7 L' 4I03 : 7 • 6 20 12 for paying the faid feveral annui- *' ties, or any of them> or for any transfer " of any fum, great or fmall, to be made *' in purfuance of this act, upon pain that *^ any offender, or perfon offending, by *' taking or demanding any foch fee, re- ^[ ward, or gratuity, ihall forfeit the fum ^* of twenty pounds to the party aggrieved, « with full cofts of fuir," &c. By a claufe in the fame a6l, it is enacted, That the transfer boo ksfnaii be open at all feafon- able times, wherein all perfons may tranf- fer, affign over, and accept flock; and in their abfence, their attornies (lawfully au-- thorifed) may do it for them ; but not a word is faid of brokers. Every money bill for conilituting trans- ferable annuities has the fame claufes, fo that the legiflature leaves the power and H3 ISO EVERY MAN method of transfering open to every body; and as free for a fervant, who has only ten pounds to lay out, as for a mer- chant with twenty thoufand ; and in fcveral of the monled adts it is expreily enacfled, That the clerks in the transfer offices fhall aid and afiiO: firangers to transfer their property. If, after all, therefore, mankind will fhut their eyes againft their own interefl, I can only lament their blindnefs, and fit down fatisfied with my own intention to do a pub- lic good; which in a variety of inftances communicated to me has had the defired efTedt. The ingenious Mrs. Centlivre, in her comedy of. The Bold Stroke for a Wife, wrote lixty years ago, introduces a iiock-broker, who, upon feeing two gen- tlemen enter Jonathan's coffee-houfe, fays to his brethren, *' I would fain bite that ** fpark in the brown coat; he comes very "often into the Alley, but never employs *^ a broker." In this fliort fentence, fhe has hnppily cxprelTcd the fentiments of the HIS OWN BROKER. 151 whole fraternity, and their adherents; and has given us a hint, that even in her days, fenfible people favv through the fal- lacy of employing brokers, and tranfadted their own bnlinefs; and if this was the cafe then, how much greater reafon is there for it at prefent, when our funds are annually increafing, and the brokerage confequently mull amount to a prodigious fum ? I lliall take my leave of this part of my fubje(5t with affuring my countrymen, the inofl formidable oppoficion Ihall not abate my zeal in their fervice ; and that^ if it b$ necefTary co give farther inftrudtions, it iliall not be wanting while a printing-prefs is to be found in this metropolis : in confe- quence of this declaration, all letters, and inquiries relative to the funds, and all ob- iedtions to this work (if font pofl paid) to the publifher, fhall be duly taken notice of in the next edition. I have already mentioned the conve- niency of carrying bank notes to buy (lock with, or, if you are well known, of draw- H4 152 EVERY MAN ing on your banker; and here I muft add a remark or two about taking bank notes, and draughts. When you are paid in bank notes, for any flock you have fold, be careful to exa- mine, if the notes are above a year old ; for if they are, you iliould infifton having them examined, and marked in the ac- comptant's oiHce in the Rank, before you take them ; the mark of examination j^ou will obferve in red ink on the face of the note, referring to the letter and number in which it Hands entered in the Bank-books of notes ilTued. If you are paid by the purchafer's draught on a banker, remember to go and receive it as foon asconvenient, any time before five in the afternooh of the fame day ; the reafon is obvious, viz» that a man may have cafh at a banker's in the morning, and may draw it all out before night •, and therefore it is proper, accord- ing to the common courfe of biilinefs, to prefent the draught the fame day you re- ceive it; otherwife, I am told, you have HIS OWN BROKER. 153 no remedy, if payment fhould be refufed the next day. But the fafeft way, when a purchafer propofes to give a draught on his banker by way of payment is, to defire him to draw on the back of the receipt you are to give him as before directed ; for by this means you do not part with the receipt tiJI you have received your money at the banker's. Of letters of attorney I fhall only ob- ferve, that fuch as are proper for all tranf- adions in the funds, are to be had at the Bank, South Sea, and India Houfesj and that people fhould be very careful what fort of letters of attorney they give, as fome are only for receiving of dividends; fome for buying ; others for felling ; and general ones are for buying and felling, and receiving of dividends : the lad, convey a moft abfolute and unlimited power; and have fometimes been given by ignorant; people in the room of others, who have thereby put their property into the hand* H5 154 EVERY MAN of jobbers^ who have loft it all in the Alley; amufing the proprietor, in the mean time, by a pundual payment of the dividends. - This caution particularly merits the at- tention of perfons refiding in the country at a great diftance from- London, and who very rarely vifit it, perhaps hardly once in feven years. Thefe fliould coiifider, that by giving a general power of attorney to any agent in London, they abfolutely make over their property for a time, till this power is revoked; and they open the door, by leading into temptation, to diverfe fpe- cies of fraud, which may in the end deprive them of their property, and expofe thcni to the cruel neceffity of making public examples of their fraudulent agents. A mortifying circumilanee indeed, when the criminal happens to be a near relation ; and- of this we had. a melancholy inftance icMue years- iince. A perfon polleiled of a genevai ^x)vv.er of attorney to buy, fell^ HIS OWN BROKER. 155 and receive dividends for another, reading in the country, has it in his power, upon any emergency, to fell out, and replace the property entrufted to him, between the times of paying the half yearly dividends, without the knowledge of his principal ; for if the fum be {landing in the transfer- books, in the fame name, at any one given time of making out the dividend warrants, that it did at a former period, no notice will be publicly taken of intermediate transfers, if it had been fold out, and bought in again twenty times ; but when a principal fufpecfts his agent, I would advife him to write fecretly to fome other friend in London, defiring him to go to the books, and examine his account, at fome unknown period, between the times of paying the dividends ; if the property has changed hands, it will appear by this method, for the temporary transfers will have been pofled regularly in your account; though if the property remains unaltered when the dividend warrants -are made our^ H 6 156 EVERY MAN the clerks have nothing to do with thefe tranfadtions. To make this matter intel- ligible to the meaneft capaeit)', let me fuppofe, that a country gentleman, who has loool. 3 per cent, confol. annuities, gives a general power of attorney to a young tradefman, or to any agent in London who is occaiionally in want of a confiderable fum of ready money ; can any thing be more eafy than to fell out the whole or any part of the country gen- tleman's fund, between the ftated times of paying the dividends, and to buy it in again, juft before a dividend becomes due ? Can there be a greater temptation thrown in the way of a young perfon, to turn (lock-jobber, to which he will proba- bly be advifed by the very broker he has employed to fell, and buy in, again, as he wanted the money, or has been able to re- place it ? And may not frequent fporting w^ith the fund, at length carry him one iiep farther, if fudden adverfity overtakes him, even to the laft ftage of iniquity, that of HIS OWN BROKER. 157 felling out, and never replacing it again ? I fhould not have entered fo minutely into this fubjed, if fatal examples of frauds of various kinds committed in confe- quence of powers of attorney imprudently entrufled, had not made it expedient. One vidtim to public juflice exceeded all his unhappy predeceflbrs ; for he forged the will of a living relation (whofe divi- dends he ufed to receive) purponina- a bequefl of her property in the funds to himfelf, and by means of this impofture, adlually fold out the property without fufpicion ; the clerks having been accuf- tomed to have the hand-writing of the principal produced by the young man, to the power of attorney, could not be ex- pected to exam.ine nicely the appearance of the fame hand, figned to a will pro- perly witnefled : but the arrival of the unfortunate lady, in good health, at the office, to receive her dividend perfonally, thereby revoking the power of attorney, difcovered the theft, and put it out of 153 EVERY MAN her power to fave the culprit. For it is to be obferved, that in fuch cafes the offices are obliged to repair the lofs of the fufferer^ having been impofcd upon by forgery ; and therefore the Bank, or any other public company, where the event happens, be- come the profecutors, for which reafon no pardon is ever granted ! — and as it may well be imagined, thofe whom we could venture to invell with fuch powers mufl be nekr and dear to us — how unfpeakable rnufi be the regret ! — how pungent the forrow, for having been the innocent caufe of the deflrudion of a friend or relation 1 I would, therefore, advife alj perfons, who are unable^ from ficknefs, or the great dillance of their refidence from London, ro receive their dividends in perfon, to give their powers of attorney to the clerks in the offices to v;hich their funds belong : thefe gentlemen having already given fecurity for a public trull:, we can have no apprehcnfic;-; ihat they will be guilty 5 HIS OWN BROKER. 159 of any fraud in private tranfadions of the fame nature. The confideration for this additional duty may be made very eafy to the principals,' and yet afford a comfortable addition .to- the incomes of thofe ufeful fervants to the public, who at prefent are by no means compenfated for their unwearied attention to bufinefs ; and it would lelTen, if not wholly re- move, the inducement they now have to be concerned with the flock brokers in various tranfacllons, which do not fo well become their ftations, and fome of which, as 1 have already obferved, militate againtl adts of parliament. A few difcreet perfons have always takci> the m^ethod here mentioned; but it is not generally known : it is therefore with a view to render it univerfal, that I fo ftrongly recommend it, at a time, wh-cn it is hardly pofiible to be too cautious with whom we entruft a power aver Eionied property* i6o EVERY MAN As to the laws in force relating to bro- kers, they lie within the jurifdidtion of the right honourable the lord-mayor, and court of aldermen, who have enadted, '* That every perfon who ad:s as a broker, within the city of London, Ihall be impowered fo to do, by being fworn in before the lord- mayor, and giving bond for his fidelity, and good behaviour ; and likewife for the payment of forty fhillings per annum into the comptroller's office." — The form of this bond may be had at the faid comptrol- ler's office, in Guild-hall, as likewife a lift of licenfed Exchange-brokers, amongft whom will be found a few fiock-brokers, but not one half of the famous college, two thirds of which are not licenfed by any authority but their own. On examin- ing the bond, it will appear that brokers are not tp alTemble in 'Change-alle}' — nor to have any property in the funds, in which they tranfa(fl bufinefs, by commif- fion. The firft claufe refpeding their af- 1 HIS OWN BROKER. i6i fembling in 'Change-alley is now become ufelefs^ as the brokers alTemble at a very large coffee- houfe, called the Stock-ex- change, and have befides fpacious rooms in the Bank, adjoining to the Transfer offices, where they prepare their bufmefs before they tranfadt it in the offices. But the other claufe ought to be flridly en- forced, for a partial and intcrefted line of condu(i:1 will ever be the confequence of il:ock-brokers being deeply concerned for themfelves in jobbing accounts in the va- rious fun<:s, That . I am held and firmly bound to . the mayor and commonalty and citizens of the city of London, in five hundred pounds good and lawful money of Great Britain, to be paid to the faid . mayor and commonalty and citizens, or their certain attorney, fuccefTors, or af- figns. To which faid payment, well and truly to be made, I bind myfelf, my heirs, . executors, and adminiftrators, firmly by thef«prefents. Sealed with my feal^this HIS OWN BROKER. 163 day of in the year of the reign of our Sovereign Lord by the grace of God, King of Great Britain, France, and Ireland, defender of the faith, and in the year of our Lord one thoufand feven hundred and WHereas the above bounden Is, by the court of lord teayor and aldermen of the city of London, allowed to be admitted and fworn a broker within the fame city and the liberties thereof, to have,ufe, and exercife the faid oilice and employment, during the pleafure of the faid court, and no longer. Now the condition of this obligation is -fuch, that if the faid for and during fuch time as he (hall and doth continue in the faid office and employment, fhall and do well and faithfully execute and perform the fame, without fraud, covin, or deceit ; and fhall upon every contraft, bargain, or agreement by him made, de- clare and make known to fuch perfon or i64 EVERY MAN perfons with whom fuch agreement is made, the name or names of his principal or principals, either buyer or feller, if thereunto required; and (hall keep a book or regiiler, and therein truly and fairly enter all fuch contra(fts, bargains, and agreements, within three days at the far- theil after making thereof, together with the names of the refpecftive principals for whom he buys and fells ; and fnall, upoti demand made by any or either of the parties, buyer or fell-er, concerned therein, produce and fhew fuch entry to them, or either of them, to manifeft and prove the truth and certainty of fuch contracts and- agreements. And for fati$fa(9don of all fuch perfons as fhall doubt whether he is a lawful and fworn broker or not, lliall, upon requefl, produce a medal of filver with his majefty's arms engraven or (lamped, on the one fide, and the arms of the city with his name on the other. And fhall not diredtly, or indiredtly, by himfelf or any other, deal for himfelf or any other HIS OWN BROKER. 165 broker in the exchange or remittance of money, or in buying any tally or tallies, order or orders, bill or bills, Ihare or Iharcs, or interetl: in any joinr-flock to be transfered or afligned to himfelf or any broker, ot to any other in truft for him or them, or in buying any goods, wares, or merchandizes, to barter or fell again upon his own account, or for his own or any other broker's benefit or advantage ; or make any gain or profit in buying or felling any goods, over and above the ufual brokerage. And fhall, and do dis- cover and make known to the faid court of lord-mayor and aldermen, in writing, the names and places of abode of all and every perfon or perfons, as he fhall know to ufe and exercife the faid office or employment, not being thereunto duly authorifed and empowered as aforefaid, within thirty days after his knowledge thereof. And Ihall not employ any perfon under him to ad: as a broker within the faid city and liber- ties thereof, not being duly admitted as i66 EVERY MAN aforefaid. And fliall not prefume to meet and afTemble in Exchang-alley, or other public paffage or pafTages within this city or liberties thereof, other than upon the Royal Exchange, to negociate his buii- nefs and affairs of brokerage, to the an- noyance and obflrudlion of any of his majefty's fubjecls, or any other, in their bufinefs or pafTage about their occafions : then this obligation to be void and of none effed:, or elfe to be and remain in full force and virtue. Sealed and delivered (che paper being firtl , duly ftamp'd) in prefence cf HIS OWN BROKER. 167 CHAPTER IV. CivifJg an account of the method cf raiftng the annual fupplies granted by parliament, for de^ fraying the public expences of the fl ate. — Of the manner of fubfcribing, and of buying and fell- ing fubfcription receipts, for three per cent, an- 7iuitics, and lottery tickets. -^Dif in flion betivixi fubfcription paid in upon infill, or onl^ paid in^ up to the time of fale ; called (in the language of ^Change Alley) Light Horfe and Heavy Horfe. — Difference betiuixt Siibfcripiion and Omnium, vulgarly known by the names of Scrip, and Omnium Gatherum. IN times of peace, the ordinary annual revenues of the flate proceeding from the duties on the importation of merchan- dife, called The Customs ; and from the inland Taxes and Excises on almo'll every article of confumption, and every convenience of life ; are fufficicnt to defray the expences of the civil and military ella- i58 EVERY MAN blifhment of government, together with the annual intereft of the funds. But in times of war, the exigencies of the Hate require very large fupplies, over and above the ufual revenue, and the me- thod of raifing thefe fupplies for many years pad has been by redeemable annui- ties, bearing an annual rate of interefl till redeemed, and transferable at the Bank of England, to which have been annexed, by way of douceurs y w^hen the value of money has been more than the interefl of the an- nuities, lottery tickets, and determinable annuities for a certain number of years. It is the duty of the Chancellor of the Ex- chequer, who very often is likewife firft Lord of the Treafury, to find out ways and means of raifing thefe fupplies, which he does by fetting on foot, a fubfcription for a loan to government of the wholeTum v/anted, over and above the ordinary re- venues of the flate. The Minlfler is guid- ed, in the terms he propofes to the mo- ney-lenders, by the value of money at HIS OWN BROKER. 169 the time of applying for the loan, and by the circumftances of the nation. If fve per cent, per annum can be had for the loan of money upon the bell landed fecurity, then it is evident, if the minifter means to raife feveral millions upon three per cent, transferable annuities, which are not worth more than 60I. for every ioo\ fliare, that h-e muft give certain douceurs for every lool. lent him in money, to make up the deficiency, both of principal and interell. This is done by a profit on lottery tickets, by determinable annuities, in a ratio that will be explained hereafter. When the parliament has voted thefe fupplies, the fubfcription to the loan La either open to the public, in which cafe e\'ery refponfible perlbn is at liberty to apply, by a proper let'.;: to the right honourable the lords commiilioners of the treafury *, for leave to be admitted to be * The letter ftiould be directed to one of the i'c- TetarieSj-deliriDg him 10 lay your requeil before the I ijo EVERY MAN a contributor, naming in his letter the funi he defires to contribute ; or elfe it is j^^rivate, that is to fay^ a certain number of perfons of fortune have agreed to be anfwerable for the whole fum to be fub- fcribed ; and have made the required de- pofir. In the latter cafe, the only Hep to be taken, by thofe who are not of the num- ber juft mentioned, is to apply to fome of them, for fuch part of the fubfcription as you want, which, if you are a particular friend, they will, perhaps, fpare you with- out any premium, or for a very fmall one; for it is not to be prefumed, that any fmall number of men, who have fub- fcribed for the whole fum to be ralfed, in- tend, or can keep it, but that they propofe to include in their fubfcription, all their friends and acquaintance. Sometimes (but ftrft lord and the reft of the board. Mr. Rofe is the prefent fecretary, to whom fuch letters O.ould be addieflcd. HIS OWN BROKER, 171 rarely) the fubfcnption lies open to the public at the Bank, or at the Exchequer, and then every perfon is allowed to fub- fcribe what he thinks proper^ and if, upon calling up the whole, there is a furplus fubfcribed, as has generally been the cafe, the fum each fubfcriber has fubfcribed, is reduced in a juH: proportion, fo as to make, in the whole, the fum granted by parlia- ment. But the fureft way of being included in the lifls of fubfcribers, as matters are now managed, is, for a monied man, whether a merchant, a banker, or a private gentle- man, to dlftinguifh himfelf upon all oc- cafions as a friend and fupporter of the meafures of ad minift ration ; for the fub- fcriptions turning ou^profitable, the mi- niller will undoubtedly take this opportu- nity of rewarding his adherents. The ap- plication fhould likewife be made early, either before, or immediately after the Chriftmas recefs .of parliament. When the fubfcilption is full, the lift of names^ I 2 \ii EVERY MAN ivith the fums allotted to each, is fcnc to the Bank; and as foon as conveniently may be, after the fubfcription is clofeci, receipts are made out, and delivered to the fubfcribers, for the feveral fums by them fubfcribed : and for the conveniency of fale, every fubfcriber of a confiderable fum has fundry receipts, for different pro- portions of his whole fum, by which means he can the readier part with what fum he thinks proper; and a form of afHgnment is drawn upon the back of the receipt, which being figned and wirnefled, trans- fers the property to any purchafer. The firtl depofit is generally of fifteen per cent, and is made on or about the time of fubfcribing; the fecond is about a month after, and fo on ti^ the whole is paid in, which is generally in Od:ober ; each monthly payment being either ten, or fif- teen per cent, Thofe, who chufe to pay the whole fum "before the appointed days of payment, are all©wed three per cent, diicount, from the time of fuch payment HIS OWN EROxKER. 173 to Od:ober. The fubfcriptlon receipts thus paid in full, are called in the Alle)^, Heavy Horse, becaufe the gentlemen of the Alley can make greater advantage than three per cent, by the Light Horse, and therefore they will not give near lo good a price for the Heavy ; nay, fome of them will abfolutely have nothing to do with it, for this reafon, that they can buy a thoufand pounds, Light-Horfe (with one payment made) for the fame money as one hundred pounds Heavy, and by buying the Light, they have an opportu- nity of fporting with, and gaining a pro- fit on, a nominal thoufand, for the fame money that it would cod to buy a hundred Heavy. LiGHT-HoRSE, therefore, is a commo- dity to job with, and opens a moft exten- five fcene of it ; to illuilrate this, 1 fhall fl:ate the fcheme for raifing the fum of iz^ooOjOool. by a loan, for the fervice of the year 1781; as it was voted by the committee of ways and means in the boufc 1 3 174 EVERY MAN. of commons, on Wednefday, March 7th, J 78 1, and confirmed by the houfe, the next day *. For every lool. fubfcribcd, the fubfcriber was Intidcd to 1 50I. in three per cent, annuities, transferable at the Bank ; and this being valued at 58I. money, for locl. iliare in the faid annuiiie?, the 150!. (liarcwaEcalculatedtobevvorthat market 87 o o Alio 25I. ft) are in 4 per cent, annuities, which being worth 70I. money for I ccl. fh.are in the faid annuities, the ^ 17 10 o 25I. fliare was calculated to be worth at market Alfo, ecery fubfcribcr of locol. reO ceivcd four lottery tickets, paying I id. for each ticker, calculated to fell ' at 12:1. ics. So that the profit on four 1 tickets fliould amount to ten pounds, j which on a lool. fubfcription is J 105 10 o * I give the loan of .1781 the preference to that of the prefent year 1784, bccaufe the latter was for fo fmall a fum as 6,coo:ool. and being raifed ir* a (imc of peace, and brought into parliament fo late in the year as the 30th of June, did a©t furniOi fuch ,a general line of illnftration of the tranfa«5tions of the Alley, under this head, :.s thofe large loam, which, for fcveral years pr.ft, have been ral fed by {iubfcription, in time of war. HIS OWN BROKER. 175 According to this calculation, every fub- fcriber of lool. would gain 5I. los. But the faid annuities riling in price afterwards, and the lottery tickets felling at 13I. 14s. the fubfcribers who fold out at the higheft price, gained nine per cent, and it was affirmed that fome bargains were made on the eighth of March at eleven per cent. But upon an average it may be fairly de- clared to be a gain of feven per cent. To which if we add the difcount for prompt payment, it will be found that thofe perfons who, having fpare money by them, fubfcribed with an intention to veil their property in the funds, (not to- job with their fubfcription) gain near ten per cent. At the fame time, an ad of parliament remains in force, reflridling legal interefl to^i^^ per cent, and punifli- ing as ufurers, with the forfeiture of treble the fum lent — " all perfons who fhall take . more than five per cent, per annum, in- terefl, or premium, on any fum of money advanced by way of loan, on any real or 1 4 176 EVERY MAN perfonal fccurity whatever." Would it not have been proper to have raifed the legal intercll of money lo fix per cent, by a new adt of parliament, the moment that money rofe to the value of more than five per cent, and confequently that govern- ment itfelf was obliged to give more, and, in fad:, to violate its own ftatute iavv ? However, the premium, or profit, upon the whole, to the fubfcribers, will be more or lefs, according to the value of the feveral articles, which varies almoft every xlay ; and few of the fubfcribers keep their whole fubfcription undivided; therefore as each article is faleable apart, there is al- ways a fufficient quantity of each in the market, as foon as the receipts are out (which is generally after the fecond pay- ment) and happens mofl commonly in April ; the receipts for the three and four per cent, annuities are called by the bro- kers. Scrip, and Light-Horfe ; that is, they are convenient troops, that do not HIS OWN BROKER. 177 coll much to maintain ; and may be dif- banded with much greater eafe than the Heavy Horfe, The conveniency of Light-Horfe, or Scrip, is this ; that in the month of April, for inftance, juft after the fecond payment, a perfon may buy a receipt for 150I. three per cent. Scrip, for twelve pounds, the method of reckoning which is thus ; fup- pofe the current price fifty-eight per cent, this is forty-two per cent, below par ; and as the purchafer buys the three per cent. Scrip, by itfelf, without the other douceurs that accompanied it,, he muit be allowed thedifcount, viz. thirteen per cent, which will be the difference between the actual value at market of his receipt for 150I. three per cent. Scrip, and lool. which mufl be paid for it finally, and the pw- chafer muft dedu as if you had actually paid in the whole ; and can likewife find more purchafers for your receipts ; for no man, who bu3^s with a view of felling again, when a favourable opportunity happens, will chufe to give 87L (which is the va- lue when all is paid in) for that which he can buy for twelve pounds. It is eafy to conceive what a vafl field Is opened by this means for jobbing, as a man poffefled of 120I. in cafli might purchafe 1500L of Scrip, after the fecond payment ;. and if he could not fell it again to advantage before the next payment came on, he might put it out to nurfe, that is, depofit it in the hands of fome monied man, who, for a I 6 iSo EVERY MAN proper confideration, would pay in upon it, and keep it as his fecurity, till the pro- prietor had an opportunity of felling it to advantage ;* which he would do fooner or later, if he had any /kill in — private let- ters from Oflend, America, or the Indies. This part of jobbing is, however, the lead to be found fault with of any, be- caufe every man has an undoubted right to buy and fell as often as he thinks pro- per ; but then it may reafonably be fup- pofed, that the great advantages arifing to the brokers from the annual circulation of Scrip, and the opportunity every man has of fporting in the Alley with fmall furns,. has co-operated to obf^rud the car* rylng into execution many better fchemes •* The loan for 17S3 fo overloaded the market, 'that private bankers refufed to receive it ; but at -length, the Bank took compaflion on the holders ;of Scrip, and made the three laft payments for ihem, at the fame time allowing them till January, ir84, to redeem it. HIS OWN BROKER. iSi for raifing the fupplies ; becaufe, from the nature of them, they would have been open to the public, and eould not have palTed through the hands of the brokers, nor their adherents. The year 1756, or 1757, I think, furnifhed us with an in- ftance of this kind, when a fcheme for Tailing the fupplies on a new plan, admir- ably calculated to prevent the increafe of the national debt, and as advantageous to the public as any that has fince been ac- cepted, lay at the Bank for feveral days unfilled; and was obliged to be laid afide, though it was drawn up by that able finan- cier, and truly great man, the late Mr. Legge, at that time chancellor of the Ex- chequer; and for no other reafon that ever I could find, but becaufe the brokers univerfally cried it down, and advifed all their clients to have nothing to do with it; for this obvious motive, that the whole tranfadion was to be betwixt the people and the government; and thefe i82 EVERY MAN gentlemen could reap little or no profit from ir. Lottery-tickets arelikewife divided inta Light and Heavy Horfe ; the former of which anfvvering the fame purpofes as Scrip, it is needlefs to fay any thing far- ther on this head. OxMNiuM is the v/hole fubfcription un- divided ; and is known in the Alley by the name of 0?nmmn Gatherum, a cant phrafe for all together. Whoever conliders with attention what amazing fums the government of Great Britain has been enabled to raife in the eafy manner juft defcribed, will find that^ independent of the mifchiefs arifing from Aock-jobbing, the flupendous fabric of public credit, built on that folid founda- tion, the inviolable faith of parliament, has accomplifhed the greateft events for the glory, welfare, and prefervation of thefe realms : it has fupplied to us the want of gold and iilver mines, and of amaffcd treafures, which were the re- HIS OWN BROKER. 1% fources of ancient flates and empires in time of war : by the llrength of public credit, money has been raifed for the ex- traordinary expences of the flate, at the niofl critical junctures, and under the moft trying circumftances, with greater expedition than it could have been coined in other countries ; and all the unem- ployed money of Europe has been lent to this country, becaufe the intereft, or annual annuity agreed on, has always been pundually paid, while at the fame time the market has been kept open, by which means all proprietors of any of the funds have conltantly an opportunity of recover- ing their principal whenever they are dif- pofed to withdraw it, by transferring their property to new purchafers ; fome- times indeed with a fmall lofs, but of- tener with gain. Poflerity will hardly believe, that ten or twelve fubjedts of Great Britain Ihould be able to engage in a loan to government i84 EVERY MAN of feventeen millions fterling ; and that their credit was fo entirely to be depended on, that on the bare fubfcribing of their names, and making a fmall depofir, ad- miniflration fhould with confidence en- gage in the mod extenfive operations of war, and fend forth fleets and armies with the fame alacrity and expedition, as if the whole feventeen millions were a(5lually depolited in fpecie, in the ahke of the Exchequer, In a word, this extent of our national credit is a Handing miracle in politics, which at once aflonilhes, and over-awes the dates of Europe, HIS OWN BROKER. 185 CHAPTER V. Of India bends.'— For 7n of mahing out bills for felling of them. — Account of Navy and Fie- fualling bills, and of Exchequer bills.'—Direc^ tions hoiu to avoid the lofjes that frequently hap^ pen from the defruElion of Bank notes, India bonds y and other public fecurities for money^b^ fire, and other accidents, INDIA bonds are the mofl convenient and profitable fecurity any perfon can be pofTeiTed of, who has a quantity of caih unemployed, but which he knows not how foon he may have occafion for ; the utility and advantage of thefe bonds is fo well known to the merchants and traders of the city of London, that it is wholly unnecef- fary to enlarge upon the fubje(fl. There is as little trouble with an India bond, as with a Bank-note : it is not indeed cur- rent in the common courfe of bufincfs, but may always be fold in office-hours, at any of the public offices, as well as at i86 EVERY MAN the Stock-Exchange ; and the method qf making out the bill is this — Take a quar- ter of a fheet of paper, and write. Sold to Sir Friendly Wilfon, May 12th, 178!. /. J. d. One India Bond (B. 2cy) ico o o Intereft 2 months 17 days 013 o Premium o 10 o Under this write a common receipt. When you want to bu}^, you have no farther trouble than to agree on the price, for the feller is to make out the bill. Thefe bonds are ufually for lool. each ; and the feller receives the intereft of the purchafer up to the day he fells ; they carry at prefent four per cen^. Navy and Victualling bills are delivered from the Navy and Vicftualling offices, to fuch perf^ns as contracl with them for fundry provifions and {lores for the fervice of our fleets : while they are in circulation they conltitute part of the Navy debt.. They bear no intereft till fix months after HIS OWN BROKER. 1S7 ciate, and then the intereft is not paid at ftated periods, like the intereft on the funds, but it accumulates, and is paid only when the bill itfelf is paid off. Afeer the firft fix months the}^ bear four per cent, in- tereft. It was originall}^ the pra^ftice to pay thefe bills off before any intereft was due upon them, and as it was thought rea- fonable that the contractors with the Navy and Vidlualling offices fhould give fix months credit, the annexed condition of four per cent, was only a provifion againft any incidental deficiency or embarrafiTment in the public revenue, which might pre- vent their being paid off within the firft fix months. In procefs of time, they w^ere left unpaid upwards of a year; and duringthe late war, they reniained unpaid upwards of three years after date. They are made out for various, and moft common'ly for large fums, and the poffeftbrs of them being often in want of money, bring them to market. According to the prefent value of money, which may be reckoned i88 .EVERY MAN above five per cent, the dilcount fliouTd be only 2| per cent, to be allowed in the lieu of intereft for the firft fix months. But fo unwilling are the monied people to lock up large fums of money for an uncertain time, and indeed fo few men are to be found at this time, who have large fums unemployed, that the difcount on Navy and Victualling bills has been lately from fifteen to eighteen per cent. a mod enormous profit! — efpecially as, in the courfe of the prefent year, no lefs than 6,6oo,oool. of thcfe bills iffued in the years 1 781 and 1782, arc to be con- verted into a new fund transferrable at the Bank of England, and bearing five per cent, annual intereft. After which, there will ftill remain bills in circulation for 6,6oo,oool. till fome future meafure is taken to pay them off, or fund them. They are dangerous things to lofe, on account of the blank, aflignment ; and not being a general commodity, becaufe they are motlly for large funis, they are con-. HIS OWN BROKER. 1S9 ^ncd ro a few hands ; and to the public in general, for whofe fervice I write, they are, ijpon the whole, not the mod eligible com- modity; though to particular people, who can afford to lie out of their money fome time^ and have large funis to fj)are for this purpofe, they are fo very advantageous. There are likewife ;7o;;-intere(l Victual- ling bills, ifTued by the Vidualling office only, for balances due to purfers of fhips, Thefe gentletnen to be fure carry on a very profitable trade; a purfer's place of a 74 gun fliip being worth 5 or 600I. per annum, befides prize-money ; but what they refund to the difcounters of bills bear- ing no interefi, feldom tranfplres. Government labours under great dif- advantages from lufferingNavy bills to re- main unpaid till intereft becomes due, for the contradors take care to allow thcm- felves the difcount they will be likely to pay, in their charges on the articles fur- nifhed ; fo that when Navy and Vi^ftual- ling bills are at 14 per cent, difcount. I93» EVERY MAN the contradlor gives only the value of Z6\, in (lores, provifions, &c. for lool. and thus if the bill is not paid in lefs than i8 months, government pays 18 per cent, difcount and intered. Exchequer bills are drawn by authority of parliament, and the following is the form ofone, now before me, iffued in 1780, " This bill entitles the bearer to one hundred pounds, with intereft at threepence by the day for the fame, payable out of the firfl aid to be granted for the year 1 78 1 : and if no fuch aid fhould be granted before the 5th day of July, 1781, then out of the finking fund. But this bill is not to be current or pafs in any of the public revenues, aids, taxes, or fupplies whatever, or at the receipt of the Exche- <]uer, before the 5th day of April, 17 81." Navy bills are frequently paid off in part by Exchequer bills, and thefe gener- ally bear a premium, fo that the holders of Navy bills prefer this mode of pay- ment to calh. HIS OWN BROKER. 191 The faiall amount of Exchequer bills, formerly iiTued, occafioned them to be confined in few hands, but of late years, two and three millions being ilTued yearly, and regularly paid off out of the aids of the enfuing year, they are become very current at marker, and are more eligible than In-dia bonds ; being a parliamentary ^fecurity, and as readily turned into money upon any fudden emergency. Ilhall here fubjoin a few diredlions how to avoid the frequent lofles that are fuf- tained by the deftrudtion of Bank notes, India bonds, &c. which, however fimple they may be, will be found not the lefs ufeful, and may not have entered into the heads of thofe who ftand moft in need of them* A great many people have iron cherts, and a fort of iron caves placed in brick- work, in their cellars ; thefe, no doubt, are very fecure : but there are numbers who are not fituated in places where thefe con- veniences are to be had, and if they are, ic)2 EVERY MAN perhaps cannot afford them : yet they have oftenjin thecourfeof bufinefs^Bank notes, India bonds, and other fecurities, the lofs of which may be more fatal to them than to the rich, who have thefe means of fecu- rity : thefe therefore I advife to take the numbers, and principal contents, of all public fecurities for money, in a fmall memorandum, or pocket-book, to be kept always about them-, fo that if they efcape from a fire with only their cloaths, they may be able to fwear to, and recover, their property. What makes me the more particular in giving this dire(flion, is, that I have obferved feveral tradcfmen, when they go out of town, lock up their notes, and the books in which they are entered, in the fame compting-houfe, and fome- times in the fame defk; than which no- thing can be more abfurd: for, even when at home, it is much better to have fuch a memorandum about you, as you have thereby the lefs to think of, and the lefs hazard to run, in cafe of fire. I think HIS OWN BROKER. ^93 this hint might in many cafes be extended to an abflrad: of debts ; but this I fubmit to better judgments, as not knowing whe- ther fuch an abflract would be valid in a court of equity. But at all events, it fhould be followed, with refped: to every fpecies of paper fe- curity, payable to bearer; for, independent of the accident of fire, if a note, bill, or bond is loft, you have no means of reco- vering it, if you have not a memorandum by you, kept apart from the fecurity, en- abling you to trace ir, and to give notice at the proper offices, that the perfon who offero it for payment may be detained, til! you arrive to examine him how he came by ir. For, as to flopping payment, that is a deception, though daily advertifed ; bills payable to the bearer muft be honoured. The following example may be of ufe in liluftration of this fubjcdl. A highway- man robbed the mail fome years (ince on the Weflern road. He afterwards came to London, hired a pod-chaifc^ travelled K 194 .. EVERY MAN in the charadler of a gentleman, took a^ frefh chaife at every pofl-houfe, and chang- ed a fmall bank note (taken out of the mail) at almofl every inn, and in this man- ner returned to town by the Eal^ern road ; he was apprehended, tried, convidled, and executed. In the mean time, many of the notes were tendered at the Bank for payment, and the owners having given in the numbers and value, payment was re- fufed, till the point of property was tried, and it was determined in the court of King*s bench, before Lord Mansfield, that the Bank muft pay the bearer, otherwife the free circulation of their notes as calh would be ftopt. The lofs fufiained by the owners in this cafe was recoverable only from the General Poft-office ; and this could not be effedted, without a feparate account having been kept of the number ,and value of the notes. However, with refpedl to Bank notes fent from the country to London by the poft, there are other precautions ufually HIS OWN BROKER. 195 taken — viz. cutting the notes in half, and fending one part by one poil, and the other hy the next. Alfo endorfmg on a whole iiote, thefe words — " Sent per poll, — — . day of to Mr. , Merchant in Lon- don ;" which endorfement would prevent any honeft perfon giving cafh for them, if they were ftolen out of the mail. And per- fons remitting from London to the countr}^ or travelling, fhould make ufe of Bank Poft bills, which are made out to the owner or order, inflead of the bearer, and being payable only a certain number of days after iight, (generally feven,) mult be carried to the proper office in the Bank for acceptance, which gives time to the owner if he has been robbed, or has loft a Bank Pofl bill, to flop acceptance and re- cover his property. Another advantage is, that being made to order, it cannot be cir- culated without the owner's endorfement, which he (hould not put till he wants to convert it to calh. 196 EVERY MAN CHAPTER VI. Of the Origin and Progrefs of Public Credit in England— The Origin of Bankifig — EJJabliJJj- nient of the Bank of England — Of Bankers — Of the Aggregate Eu7id — And of the Sinking Fund. HAVING had occafion to mention the great advantages arlfing to this kingdom from the flourifliing flate of its public credit, in lime of war, (p. 41) it has been thought neceflluy by fome gentlemen, who have perufed my treatife on the Elements of Commerce, Politics, and Finances,* that 1 fhould borrow from that work, a more ample explanation of a fubjedt fo clofely conneded with banking and the'linking fund; and as it has *■ In one volume ^ro, punted for R. Baldwin, ia Patci-Noflcr-Rovv, HIS OWN BROKER 197 been my conftant pradice, from the pub- lication of the firft edition of " Every Man his own Broker," to pay attention to every improvement fuggefieJ by its Rea- ders, I fhall make no apology for intro- ducing into this chapter, the following ex- tradls from my other work ; nor for an- nexing a fupplement, highly interefting to every ftockholder, from that part of my Elements of Finances, which treats of the fyftem of flock-jobbing. " I fhall be very concife in my dcfini- ^' tion of Public Credit, becaufe, 1 ima- *' gine,the fubjediis pretty well underflood *« in this kingdom, where fo many perfuns " are concerned in its extenfive operations. ^* Public Credit, as it refpedls money ** tranfadtions, and particularly the fyftem " of Finances, or the adminiftration of '^ the revenues of kingdoms, means no *^ more, than that mutual confidence be- «^ tween government and the people, which •' enables the former to obtain, by dlf- <^ pofing the latter to contribute, very large K3 198 EVERY MAN " portions of their perfonal eflates, to fup- " ply the exigencies of the ftate, on great ** emergencies; upon the ilrength of obll- '• gations contracted and promifed to be *' pundtually performed on the part of ** government, at dated future periods of •* rime. ^* Our enquiries concerning the m.cans *^ by which Public Credit, thus defined, " has been ellablifhed in this kingdom, " leads us diredtly to the fubjedt of *' banking, to which Public Credit in all •' countries owes its origin, and we muft " now confider them as blended, or rather *' united by the following principle. «' Whatever is eftablilhed by the autho- " rity, and common confent of a nation, " to be the medium of their mutual ex- *' changes with each other, is properly the ** money of that nation. It may, therefore, •' confift of gold, filver, and copper coin; " or of paper; as Bills of Exchange, pro- •' milTory notes, bonds, and other fecu- M rities for fpecle ; all of them anfvvering HIS OWN BROKER. 199 «^ one and the fame purpofe ; general *' CIRCULATION. " On this principle, banks of circula- " tion were formed ; being an imptove- " ment on banks for mere depofit. ** And on the good faith of banks of *' circulation, together with a political ap- *^ plication of the principle^ and of the ** advantages arifing from ir, was planned " the fydem of borrowing money on pub» ** lie, or national credit, in England, •' The faith of parliament having the fame ** effect as the inviolate credit of banks ^ *^ and being fubflituted in the place ; that ** is to fay, to fupply the defecfl of amaiTed ^< treafures, or of the mines of the precious ^* metals, ** The general definition of a bank, <* means no more than a public repoli^ , ** tory for money, to be refunded on ** demand, •^ But banks on this limited feheme not -** being generally ufeful to commerce, *• improvements were made on this idea of * K4 aoo EVERY MAN '* depofiting money in banks, at firfl only, *' intended for the convenience and fecu- •^ rity of private peifons : and the Italian *' banks very early opened a circulation of " fpecie, by difcounting and negociating *' bills of exchange, and by purchaiing *' or lending money on bullion, plate, ** jewels, and other valuable effcds. For ** the knowledge of this profitable traffic "they were indebted to the Jews, fettled ** in Lon:ibardy, who, partly for their own ** convenience, and partly on the princi])le ** of gain, affiled in the eflablifhment of *' banks of circulation. In procefsof time, ** thefe banks acquired additional Itrength " and new profits, by means of their credit, " which enabled them to make their notes " the medium of their exchanges, and to ** ifTue them in payment of demands on ** them, in the room of cafb. *' In our didionaries of commerce, you << may findan ampledetailof theconftruc- •^ tiqn of all the banks of Europe. My ** fubjcdl requires an attention-only to two: *« the bank of Amflerdam, and the bank HIS OWN BROKER. 201 " of England ; the firft having furnifhed ^^ the outlines of, and the laft fupported '^ the ilrudure of public credit^ and of *' paper-money^ in this country. ** The bank of Amflerdam was founded *^ at the beginning of the lafl: century ; the *' republic of Holland having ah-eady *' viewed, with a wdfhful eye, the national ^' advantages arifing to the flates of Venice *' from their bank. They, therefore, *^ took, the advantage of favourable ciiv ^' ciimilances — peace, commercial profpe- *« rity, and a redundancy of cafh — to form *' a bank, which was at once to be a repo- *^ iitory for money, and to fupply its place *^ in commercial tranfadtions : for by an *' ordinance, at the time of its eftabliih- ** ment, the payment of bills of exchange^ " and of merchandize purchafedin whole- *^ fale quantities, muft be made only in " affignments on the bank, which cannot *^ be refufcd ; and thiis millions are cir- *' culated in a day, without the interven- *^ tion of the precious metals, by {utl^Iq K 5 202 EVERY MAN ** transfers, or aflignments on rtie bank. ** But for the convenience of {^rangers and ** of retailers, there are a fet of cafliiers, *^ out of the bank, who are always ready " to ifTue cafh for bank affignments ; and ** no fum is taken in at the bank, from ** private perfons, under three hundred " florins, about thirty pounds flerling : *^ by thefe means, there is always fpecie ** enough current for the purpofes of com- *' mon, domeftic circulation. And though *' this famous bank does not avail itfelf of *' ilTuing notes of credit, yet its reputation, *' through the facility of its transfers, and ** the prevailing notion of its vaft trea- -** fures^ real or im.aginary, was carried to ** fuch a height, that it furpafTed all other ** banks in Europe, tiil that of England ** began to flourifh ; and, on account of *^ its improvement of the Amflerdam plan, ** gained the preference. *♦ William III. eftablifhcd the bank of *' England, upon fome of the outlines of << that cf Amfterdam, with ihefe material HIS OWN BROKER. 2oj *^ improvements. No perfons are con- *^ llrained to pa)^, or to receive payment iil " bank notes ; the matter is left open, " free, and optionable, agreeable to the ** genius of the Britilh nation. " The original proprietors, or fubfcrl* *' bers to the fund which formed the ca- ^' pital of the bank of England, had four " per cent, annual interefl, from the time *^ of making the depofit; nor was the '^ whole principal fum ever called for, I " believe only eighty-five per cent. Thus *^ they have enjoyed /c^z/r per cent, on a «* nominal lool. Ihare ; this has iikewife *^ rifen, by the profits of the com.pany, to *^five and a half per cent, befides which^ ** their original nominal lool. fhare, has " rifen to be worth 160I. and fometimes " more : whereas the contributors to the *< foundation of the bank of Amfterdam^ *^ have never received any other profit, but *^ that of the rife and fall of the ^^/^, onbuy- *' ing and felling, which varies from three to ^^fix per cent, I fpeak of th€ public % K 6 204 EVERY MAN <^ what th*e dates, or the diredors may <^ gain, is as great a fecret as the treafures *^ of this bank; eilimated by fome writers ** at twenty-eight million flerling, in gold *^ and filver bars, and fpecie. Bur Sir *« William Temple, a very difcerning wri- •• ter, obferves, that there is no forming ** an adequate notion of its real riches ; *' for though they lliew a great quantity of ♦* ingots of gold and filver, in a large ♦* vault under the town-houfe, yet the •' facks Handing by them, and faid to con- " tain coin, may, or may not, as they are " never infpedted but by the burgomafters, «» It is mofl: likely, the greatefl: part of *^ their treafure is ideal; and that King *' William was in the fecret, fince he fo- ** readily purfued the fame principles of *« public credit in England. •• In every reputable bank, whofe note* ** on demand enter into circulation, the *' fame as fpecie, one third of the amount ** of their paper-credit will always be a HIS OWN BROKER. 20; '* fufficiency of coin to keep their calh *' payments regular; and fo long as money *^ can be inftantly had for their notes, ** thefe will always have the preference, ^< on account of the facility of tranfport, " and to avoid the time and trouble of ^' tale, in large fums. " ButKingWilliam extended the Dutch '« plan, by conllituting annuities determi- *« nate and perpetual, as a confideration " for capital fums borrowed ; and thefe *' were made transferable on the very " principle of the transfers of the bank " at Amiterdam. " This is the true origin of the funding •< fcheme ; and the hiflory of the genera- ^* tion of brokers, bears the fame date. It " is likewife remarkable, that their com- *' miffion for buying and felling is an eigblb *^ per cent, exadly the fame as is taken by *' the agents of the bank aflignments at *« Amfterdam. But the misfortune aitend- *^ ing the funding fyftem at the Revolu- *^ tion; was, that want of affedion, a dif- 2o6 EVERY MAN " fldence of government, and the fear of ** another Revolution, prevented King ** William from prpfiting by the plenty qf ** money then unemployed in the nation, " and obliged him to tender very high *' intereil, which opened the door to the " excifes that have been entailed on us, *f from the aera of his reign." Let us now proceed to the nature of the bufinefs of private bankers, which has confiderably increafed of late years, and the profits ariiing from it, been fo al- luring, that their number is more than doubled : indeed, if a check had not been put to their amazing increafe, by the fail- ures in 1772, it is probable mod of the monied men in the kingdom would have turned bankers. The art or myftery of private banking was brought over to England by foreigners ; fome authors aflert, by Italians. — The common bufinefs of thefe bankers was, the exchange of bills for money, whether thofe bills were inland, or foreign ; which HIS OWN BROKER. 207 exchange, in cafe the bills were inland, was then and is Hill termed, difcounting of bills. But when the bills are foreian, they are called bills of exchange ; becaufe they are current in trade, and as good as cafh ; allowing only the common courfeof exchange betwixt the value of fpecie in the different countries, w^here the drawer, and the perfon drawn upon relide ; and bankers being fuppofed to have a general corre- fpondence in the commercial world, bills of exchange pafling from one nation to another, moil properly fall under their cognizance, as being the moft convenient to them, who may frequently have occa- iion to remit money to feveral foreign parts, in the place of which, they can more pro- fitably fubftitute thefe bills of exchange : thus it became moft advantageous for bankers to buy them ; and this branch of trade ftill forms a very confiderable part of the bufinefs of fome bankers. Another article they formerly dealt in was, the-buying and felling of bullion, and 2o8 EVERY MAN of wrought gold and filver, which I fup- pofe gave rile to the uniting in one fhop, the trade of a goldfmith and banker — for we find mod of the eminent bankers of the laft century were goldfmiths — By the fta- tute of the fixth of William and Mary, the Bank of England (which is no more than a corporation of bankers) amongft other privileges allowed them, are to deal in gold and filver^ and may fell goods pledged to them, if not redeemed in three months. By length of time, and the in- creafe of the national debt, the Bank, as well as private bankers, have changed, or totally laid afide many branches of their bufinefs; and the principal concerns of the Bank at prefent, are, the iiTuing of notes in exchange for fpecie ; the keeping of gen- tlemen and merchants cafh, which they are always ready to deliver on demand ; the aiding and affifling the government in re- ceiving contributions for public fubfcrip- tions ; the keeping of transfer books open, as already mentioned ; and the paying and 6 HIS OWN BROKER. 209 dlftributing the intered of the feveral go- vernment fecuritles. The firfl: of thefe ar- ticles muft greatly enrich the Bank as a corporation ; for thefe notes are now de- fervedly in the fame repute as cafh, in mod parts of Europe, as well as at home; and people often keep them for a long fpace of time, fometimes for years, without ex- changing them ; and even then, they often exchange them with private perfons. — Let lis then fuppofe, that only the amount of 50,000!. of thefe notes, do not return into the Bank to be exchanged for fpecie^ in lefs than fix months after they are iiTued, the Bank, in this interim, may make a very confiderable advantage of the cafii origin- ally paid in for thefe notes, and this forms a part of their profits ; to which muft be added, dlfcounting of bills, by which the Bank of England renders the moft eflential fervice to the merchants and reputable tradefmen of London, and, through their means, to the commercial intereft of the whole kingdom. 210 EVERY MAN Confiderable gains likewifc arife from cafh left in their hands on open accounts ; and from the fums allowed by governn-^ent for the direction and management of the public funds, and occafional loans to the government. It is not, however, my defign to make any calculation of thefe profits, which they merit, were they ever fo great ; for I think I may venture to fay (without being charged with partiality as an Englifhman) that the Bank of England is the bell bank in Europe ; and that no words can fufficiently exprefs the juft applaufe, which gratitude requires us to beftow on the pru- dence, difcernment, and integrity of its di- redlors. My reafon for explaining the pro- fits arilingfrom theilTuingof notes forcalh, is only to Ihew that thefe profits have indu- ced private people to endeavour to put their notes upon the fame footing ; fo that one part of thebufinefs of private bankers is, to deliver out their notes for cafh ; and from this arifes part of their fubfiltencei for HIS OWN BROKER, an while thefe notes remain in particular liands, or can be circulated fo as» not to return home for whole months together, the bankers enjoy the fame privilege and profit as the Bank, in proportion to the notes they iiTae.— The fame profits arife from keeping people's cafh. I have often been afked how a banker can find his ac- count in permitting a broker to put his money into his hands, perhaps on a Satur- day afternoon, and to draw it out on the Monday morning following, fince there is a certain expence, and lofs of time with- out any apparent profit ? In anfwer to which, let it be obferved, that bankers do not in general confider the profit they gain on the account of any individual, but the gain upon the whole. — So that fuppofing a banker receives in any one day 6o,oooL and is drawn upon only for 20,oool. the balance of calh remaining in his hands at five in the afternoon (the time they fhue up) is 40,oool. and a broker's loool. con* tributes, as much as a gentleman's, to the 212 EVERY MAN forming this balance, which a fkilful ban- ker will know how to employ to advan- tage, if he has it only one day in his hands; but if, upon an average, a banker has 20o,oool. in his hands, more than is called for, for weeks together, it is eafy to conceive, that fuch a man will foon get rich. — Another, and perhaps as confider- able, a branch of bufmefs as any, amongft the bankers near the Alley is, the taking in various kinds of papers in pawn. — Such as Scrip. Omnium, Long annuities, &c; — But this part of their traffic will take up too much room fully to unravel in this little work ; I Ihall therefore make only one re- mark, which is, that it is impoilible to diftinguifh which are the moft ufeful to each other ; the brokers to fome of the bankers near the Alley, or thefe bankers to the brokers. Of the nature of the Sinking Fund, I fliall endeavour to give as concife and clear an idea as poflible. HIS OWN BROKER. 213 Subsidies and taxes of various kinds conflitute the funds, on the credit of which immenfe fums have been borrowed, on condition that the capital fhall not be demandable, but that a certain proportional part of the fum fhall be annually paid, either as interefl for the whole, or in cx- tindtion of part of the capital ; when the fum annually paid, is no more than the in- tered agreed on for the loan of the princi- pal fum, it is {lyled a perpetual annuity ; when it exceeds the intereiT, and is de- iigned to extinguiHi by partial payments both principal and intereft, it is called a determinate annuity, and is granted either for life, or for a term of years. All fums of money that have at any time been railed by authority of parliament for the public fervice, are to be confi- dered as national debts contracted on the credit of fome certain tax; various inte- refts for which debts are annually paying to the public ; and will continue to be fo paid, till the faid debts are redeemed. ^14 EVERY MAN or paid off, by the fame authority by which they were contradied : and to fe- cure the payment of the faid intereil, the moneys arifing from feveral duties, and cuftoms payable into the king's Exche- quer, have been from time to time appro- priated : thus we find in the reigns of King William, Queen Anne, and George I. the duties on coffee, malt, he. Sec, appro- priated to the payment of life annuities, annuities certain, and annuities arifing from lottery tickets. The funding fcheme commenced foon after the Revolution, and has hitherto an- fwered the purpofe for which it was com- menced ; the providing for the exigencies of the flate in time of war, without theleaft impeachment or diminution of its credit ; by fupplying the place of amalfed trea- fures, which were the refources of former times, for the extraordinary emergencies of great nations. Experience has fliewn that taxes pru- dently laid on fuch articles as could well HIS OWN BROKER. 215 fupport the weight of them have produced confiderable furpluffcs ; that is to fay, they have become rtiore than the abfolute fecu- rlty engaged for, and have thereby induced foreigners, as well as natives, to advance their money on fo fafe a footing. Thefe taxes, thus made a fecurity to the public for the loan of money, have always been deemed equal, if not fuperior, to mortgages on land ; and may therefore, in this fenfe, with the greateil propriety, be called funds. In our flatutes, fince the Revolution, various funds are fpecified ; fuch as the Eafl-India, South-Sea, Aggregate or Ge- neral Fund, and theSinkingFund, When- ever the word Fund is applied to either the Eail India, or South-Sea company, it means their Stock or Capital*, or fuch du- ties and articles of the public revenues as are appropriated to pay the intereft due * The words Fund, Stock, Capital, or Prin- cipal, are generally lafed at prefent, as fynonymou? terms. ai6 EVERY MAN on fuch flocks till redeemed by par- liament. The Aggregate fund, fo called from its being a collecflion of many things in- corporated into one mafs or body, com- prehends not only the feveral rates and duties referved to pay and fatisfy the in- tereft due on the funds at the Bank, IndLi, and South-Sea Houfe*, but all the articles of the public revenue in general, except thofe that compofe the king's civil lifl, which are about feventeen in number, con- fifling of tonage and poundage, hereditary or temporary excife, letter m.oney, fines of alienation, feizures, confifcations, proffers, compofitions, &c. — But thefe civil lift ar- ticles are, by an adt of the firfl year of the reign of his prefent majefly, made a part of the Aggregate fund ; in lieu of which his majefly upon his acceflion was gra- cioufly pleafed to accept of the fum of 8oo,oool. per annum, and parliament has fince added ioo,oool. more, payable * Vide rGco. L HIS OWN BROKER, ai'; quarterly, our of the faid Aggregate Fund, which in fadt is a more certain and a better e-iliablifliment for the civil lift than the ufual regal revenue, arifing out of the peculiar ' articles above fpecified, which never pro- ' duced tfhe fum affigned for the mainte* nance of the dignity of the crown; and in eonfequence of their deficiency, feveralaids/i at fundry times, were granted by parlia--^ ment to his late majeft}^, of ever glorious memory, to make good arrears and defici* encies due to the civil lift account; all which trouble and confuiion' will be pre*;^ vented for the future, by his majefty's ac-i^ cepting a certain annual fum, iiiftead of* the uncertain produce of the articles for* merly appropriated to the purpofe of pay-' ing the civil lift -appointment. Whatever furplus remains upon any, or upon all the rates and duties which confti- tute the public revenue, after payment of the intereft they ftand charged with, are carried^toa feparate and ciiftindl account; - L 2i8 EVERY MAN or fund, known by the name of the Sink- ing Fund. Over and above the furplulTes that have been carried to the Sinking Fund, great ac- ceffion was made to this fund by the reduc- tion of interefl*, on the capital fum of ^57,703,275 : 6 : 4^, which reduction produces annually, a faving to the nation of /577P32. All the favings and furpluffes were to be referved and kept moil facredly, for the valuable purpofe only of reducing, lefTen- irig, finking (from whence the fund had its name), and paying off gradually the na- tional debt. The iirfl adt, which relates to the application of thefe furpluffes, is, George L anno 1716, at the end of which is this remarkable claufe, which I infert here becaufe it is in reality the original or inftitution of the Sinking Fund. " All the monies to arife, from time to *' time, as well of the excefs or furplus of J. ' '■ I. ■ * Vide 23 Geo. II. HIS OWN BROKER, iij *' an aent of the interefl: of a much larger fum ♦, if it were neceffary to raife it, than the whale of the prefeni: national debts; the amount of which, however, is fo amaxing, and fu ua- HIS OWN BROKER. 223 exampled in the hillory of the finances of any nation, ancient or modern, that it ought to find a place in this treatife, as it will ferve, not only as a monument of the powerful credit of the Britifh govern- ment, but will likewife account for the numerous taxes impofed on the prefent inhabitants of Great Britain, which were unknown to their progenitors. CHAPTER VIL StaU of the National Debt^ Principal and annual Intere/l-^with Remarks, THE Commiflioners appointed by the houfe of Commons to examine^ take, and flate, the public accounts, of the kingdom, have pointed out and flrongly recommended the neceffity of making every fubjediin the kingdom well acquainted with the general (late of the public accounts : on the ftrength of fuch powerful authority, I have judged it ex- L4 2n EVERY MAN pedient to intrcxluce in this place, a new, feparate chapter upon this important fub- jed-. Aiul that it may appear flill more fatis factory to the reader, it muft be re- marked, that for fome years before the fitting of the Committee, Lord North, for reafoDS beft known to himfelf, had put a flop to the annual publications of the flate of the national debt, which ufed to appear in our news-papers, by enjoin- ing fhe clerks in office not to ifTue copies of any public accounts : thus none but members of parliament knew the general itate of the public finances. The reports of the committee are likewife voluminous and expenfive, which was another induce- ment to infert fuch abftradts from them, as might enrich my little tradt without any additional expence. The Comm.iffioners, in their Eleventh Report, obferve, that the national debt is fwelled to a magnitude that requires the united efforts of the ablefl heads and purefl hearts, to fugged the proper and HIS OWN BROKER. 225 effectual means of redudlion. The na- tion, they add, " calls for the aid of all its members to co-operate with govern- ment, and to combine in carrying into execution fuch meafures as Ihall be adopted for the attainment of fo indif- penfible an end : this aid the fubjedt is bound to give to the ftate, by every other obligation, as well as by the duty he owes his country ; and, with fuch general aid, the difficulties, great as they appear, will, we trufl, be found not infurmount- able, " A plan muil be formed for the je- dudlion of this debt, and that without delay; now in the favourable moments of peace. -The evil does not admit of procraftination, palliatives, or expedients; it pr-cfles on, and mult be met with force and firmnefs. The right of the public creditor to his debt mufl: be oreferved in- violate ; his fecurity reds upon the folid foundation, never to be ihaken, of par- iiamentarv, national faith *—What can. be 1126 EVERY MAN done— the fupport of public credit, the prefervation of national honour, and the juftice due to the puhlie creditor, de- mand Ihould be done — it mud be done^ or ferious confequences will enfue. The fubje309,53al. 8s. 3d:* ajo EVERY MAN which mud be added to the annual inte- refl of the redeemable debt ; as muil alfo the charges for the management of both, amounting to 134,291! 13s. rd. and the fees to the auditors of the Im| refl, which are enormous, and the fees paid at the Treafury and other offices for auditing, paffing, and figning warrants relative to- the faid debts. The whole amounting to the fum of 8,70657921. 9s. id. to be annually drawn from the Inbour and in- dultry of the people by various taxes- But a heavy unfunded debt remains to be combined or united with the zhove funded debt, iince no other means are likely to be found of adjuiling it ; and Mr. Pitt, the miniller of the day, has already begun the operation by funding 6,6oo,oool. of the Navy bills, fince the ftatement of the public accounts in the Appendix to the Eleventh Report of the Gommiflioners,, dated 4th of December, 1783 ; which fum the reader will find I have placed to^ iht account of the principal of the funded HIS OWN BROKER, zjr ^ebt, and have added the intereft to the account of annual intereft on the whole •funded debt.. The unfunded debt is fo complex,- that it cannot be accurately Xlated ; the members in their fpeeches ia parliament differing materivally from each other, and the Commiffioners of Accounts varying again from the flate of it given into parliament by Mr. Pitt, in his budget y or flatement of the public finances for 1784. Nor is it to be wondered at, if we advert only to the aukward manner of making up the annual detail of the trea- fury operations, in the budget, contrary to every rule of mercantile book-keepings and: to every rational idea; witnefs one artick in Mr. Pitt's budgets Under the head of Mifcellaneous Services, we find 2jOoo,ocol. charged as paid to the Bank of England for the like fum borrowed of the Bank in 1781, for the renewal of their charter; and under the head of Ways and Means, the fame fum is placed to the credit of the account, which is to tXl'l EVERY MAN be underflood thus, — the Treafury have not paid the tzm millmis to the Bank in cafh, but in new Excnequer bills, there- fore the faid fum Hill fubfifls, and makes apart of the unfunded.debt; a mode of fhifting accounts, calculated to perplex the founded judgrnent. After making allowances, however, for this and other articles of mock payment, by the renewal of paper fecurities, which leave the debts in their old flate, I iind, that the mfimded debt amounts to 12,256,541!. i is. 4d. J, and the annual intereil to 312,742!, which fums being added refpedtively ; the prin^ cipal to the principal of th^ funded debt ; and the interefl to the annual interefl of the funded debt ; the total of the na- tional debt will be found to amount to 239,219,7961. 7s. 9d. principal; and the annual intereft, together with the charges of management and fees of offices, on the total of this debt, will amount 'to 9,019,534!. add to this, 5,000,000 for the peace ellabliihment , that is to lay. HIS OWN BROKER, 233 for the ordinary annual expences of the civil and military charges of government; and the total prefents the amazing fum of upvvards o^ fourteen millions to be raifed yearly by taxes already impofed, and others to be levied upon the people in the courfe of the next fellion of parliament-. Under thefe extraordinary and unpre- cedented circumflances of the nation, the Commiffioners of Accounts inform us, " that the refources of the country are fo extenfive, fo various, and fo produdlive, that a fpirit of frugality, univerfally dif- fufed and kept alive, cannot but be at- tended with the moft powerful effedts," They advife us, ^' no longer to feek for Ihifts and fubtleties to evade the payment of thofe duties and taxes, which the wif- dom of the legiflature has deemed the moft eligible, and which the neceffities of the ftate fully juilify." But this ad- vice will never be attended to, while it is founded on falfe principles, that is to fay, fo long as the taxes are uncquaj. 234 EVERY MAN partial, and oppreffive, which they cer- tainly are at prcfenr. But in another part of their report, they throw out a more rational hint, and indeed the only one, that, being adopted, can fave this country from the inevitable ruin, which mufl be the confequence of raifing the annual intereft too high for the abilities of the people ; an event which mufl: take place, if another war fliould break out in lefs than twenty years, and the fame fyftem of finances is invariably purfued, let who will be minifter. <^ Every man may dedicate a portion of his income, or fome fhare of his af- fluence, according to his faculties, to this great national objed: — let the produce of fuch a general exertion be wifely directed and faithfully applied, and this Debt, enormous as it is, will begin to melt away." Very true ; and may I be per- mitted to add, that this nation mufl look up to the great and wealthy fubjedVs for falvation ; it cannot be effedled by the HIS OWN BROKER, ajj flow operations of appropriating ofje mi Won annually to the redudtion of tzvo hundred i^nd forty millions. Who does not fee that one year of war, ten years hence, will fwell the account again, beyond the funi reduced ? — No : men whofe incomes and affluence produce from 5 to 50,000!. a year, muft contribute ^i--(?y}y//;/zi according to their faculties, to enable government to buy in large portions of this debt, while it is fo much under par^ that there will be a faving to the nation of upwards of 40 per cent. " Let public benevolence take the lead of private intereil — example may produce much, and muft begin fomewhere," — Thefe are the words of the Commiffioners — and I conclude this chap- ter, by foretelling, that it muft begin with the clafs of men juft mentioned : even if part of the eftates of the great landholders Ihould be fold for the purpofe, they wiil be gainers in the end, by parting with a portion,, to fave the refidue,. from tha^ ;236 EVERY MAN total alienation, which is the nfual con- fequence of general revolutions in king- doms, whether euedted by foreign con- queft, or domellic anarchy. CHAPTER VIII. O/i State Letter les,-^-'u^rgumenis for^ and againj} them, — Advice to adventurers, — Expojure of illegal Schemes, A Lottery is a kind of public game at hazard, which had its origin in Italy, as far back as the time of the an- cient Romans, and continues in practice, in that country, in France, Holland, and England, as a mode of raifing money on eafy terms for the fervice of the ilate. All commercial and political writers of re- putation have condemned Lotteries as im- politic, and highly detrimental to trade. Confcientious Divines, Merchants, and Tradefmen of eftablilhed credit in every HIS OWN BROKER. 237^ age, and in every country where they have> been countenanced, have publicly pro- tefled againil them. In juflice therefore to the wifdom and integrity of thefe men, we.lhall ftate the principles upon which, they- found their ob- • jedlions to State Lotteries. Divines and able politicians maintain, that they up- hold the fpirit of gaming in a nation, and occalion a general depravity of morals, by corrupting; and; vitiating the minds of the mais of the people, who, allured by the: falfe hope of becoming fpeedily rich, and the example exhibited of feme, who have occaiionally become fo, are feduced from, honed labour and induftrjv to turn adven- turers ; to lofe a great deal of time in watching the fate of their adventures, and; thereby co become poor and indigent. Merchants and tradefmen fay, that they", occaiion bankruptcies and Subordinate fai- lures, in every commercial flate where they are frequent. The wholefale tradefman, indead of paying his debts in due time to 6 ftjS EVERY MAN the merchant, rifks confiderable fums in the lotte-ry, in hopes of gaining a capital prize, which will pay all his debts at once, and raife him to a Hate of independence. The retail ihopkeeper finds his book debts increafe, and his ready money cuf- tomers diminifh, becaufe fervants, and people in the middle and lower ranks of life, carry the produce of their labour and induftry to the lottery-offices, inftead of expending it to purchafe the neceffaries and conveniencies of life. The crouds that frequent our lottery-offices a fhort time before, and during the time of drawing the annual Stzte Lotteries, demonftrate the juflnefs of this complaint. Girls with tattered gowns and cloaks, often without a Ihift under them ; boys without coats ; men, women, and children, with pallid, half-famiihed countenances, may be fcen in many of them every evening ; to ufe their own vulgar, but expreffive Ian* guage, " flinging away good money after bad." 2 HIS OWN BROKER. 239 The corporation of London, at various periods, have petitioned the king and the parliament againft frequent State Lot- teries, and fometimes with fuccefs. But of late years, they have been annual, in time of war, and the alterations in the fchemes have proceeded from bad to worfe, increafing the means of gambling, facilitating it more and more, and thereby vitiating in a greater degree the morals of the people, befides impoverifhing them ; and all this, without anfwering one bene- ficial purpofe to government, which was not obtained by Lotteries upon the old plan. But before we enter upon a difcuflion of the difference between the prefent and the former Lottery fyftems, it w^ill be proper to lay before the public, all that our mi- niilers of the finances, from Sir Robert Walpolc to Lord North, could or can ad- vance in favour of State Lotteries. In time of war, when the value of mo- ney rifes in proportioi to the neceflities of a^o EVERY MAN the State, government by means of Lot- teries are enabled to keep down the rate of intered, and by borrowing money at lower intered, than they could poffibly obtain it, without the affiftance of Lot- teries, do not contract fo large a debt, to be entailed upon pofterity for the pay- ment of the annual interefl of the large principal fums raifed every year. If by ifluing a ticket (for which go- vernment is paid lol.) to a fubfcriber of lool. to any loan, for which ticket adven- turers in the Lottery will be induced to give 14 or 15I. the minifter obtains the loan at one half per cent, lefs, perpetual interefl; a great faving to the nation is eifedted, for which government does not pay a iliilling. And as to the adventurers, it being a voluntary adt, which every man has it in' his option to perform or not, no injuftice or opprcffion can be charged upon the in* Hitution of State Lotteries. HIS OWN BROKER, 241 In proportion as the premium gained upon tickets, by the fubfcribers to the loans, lowers the rate of interefl for the principal fum raifed, fo does it operate to leiTen the quantum of taxes to be impofed on the people, for the payment of annual interefl (perhaps in perpetuity) on the faid principal fum. The money laid out in Lotteries is taken from the purfes of foreigners as well as natives ; it returns into the general cir- culation, and, except incidentally fom^ capital prizes pafs into the hands of fo- reigners not refiding in the Britiih domi- nions, it remains at home. With refpedt to the morals of the peo« pie, it is well known that the fyflem of po- licy, in the befl regulated governments, muft occafionally deviate from the diredt line of moral rediitude. Finally, as to the complaint of Impo-- veriihing fome people, and making others bankrupts ; if the ftate is not impo- veriihed, by the iofs ©f any valuable M 242 EVERY M A N branch of its commerce, or by the emiriion of its fpecie to foreign countries never ta return ; it matters not, in the idea of a great Itatefman — whether Peter is poor and Paul rich, or Paul poor and Peter rich, provided both refide in Britain, and that the money that palles from one to the other, is not buried under ground, but thrown into the general circulation. Admitting the political truth of thefe propofitions, it mull: ilili be allowed, that State Lotteries are refources, which ought not to be made ufe of when others more eligible can be found ; and that wh«n they are abfolutely necellary, thofe plans or fchemes iliould be preferred, which confine th's public game at hazard within the narroweft poiTible limits, and do the leaft injury to trade. Care fhouid likewife be taken that cidlateral games, partak- ing of the nature, and j)roducing all the bad effctfls of thofe private Lotteries, u hich have been fupprefied by acts of parliament in every reign from the Revolution to the 4 HIS OAVxV BROKER. 243 }>rerent tltnc, iliould not be fet on foot by Lottery-ofiice keepers, upon the bafis of the State Lottery. In defiance ot law, and found policy, this is fliil done clandeftinely, and was •the pradice publicly till the year 1782. To expofe the fallacy and deception of thofe illegal games, whether denomi- nated Chances or Policies, and to advife adventurers to follow the regular CD line of adventuring, under the fandlion and fecuriry of parliament, is the deiign cf this chapter. With this view the difference between the old Lottery fchemes and the prefent, which with litcle variation has been the phm for about ten or twelve years pall, muil be briefly ilnted,- Upon I he old plans, which prevailed from Sir Robert Walpole*s adminidration to that of the Duke of Grafton, the tickets in the State Lotteries were iiTued at tvii pounds each — and occafionally the fcb- fcription was open to the public at large — U 2 244 EVERY MAN The highefl prize was io,oool. and the lowed 2ol. there were from four to fix blanks to one prize, and the blanks en- titled the bearers to live or fix pounds Hock, in three, or four per cent. Bank an- nuities, the value of the blanks and prizes being generally funded. The office- keepers divided the Tickets into Shares snd Chances. Shares entitled the bearers to the proportion they had purchafed of blanks and prizes, chances to prizes only, that is to fay, they had no return if the ticket was drawn a blank. The office- keepers purchafed the blanks and prizes drawn, according to the value of the an- nuities into which they were to be funded ; and this caufed a continuation of other kgal bufinefs, feme months after the drawing was over. The tickets according to the advantage or difadvantage of the fcheme, in refpedt to the number of blanks to a prize, and the number of high prizes, generally fold at from II to 12I. before the drawing. 5 HIS OWN BROKER. 245 When the ticket fold for iiL and the blank was in titled to 61. in 3 pei* cent, annuities, as the blank, might be fold for 5]. I OS. ready money, when 3 per cents* were at col. the adventurer only played at ihh public game of hazard, at the rifk of 5I. I OS. And at the higheft calcula- tion, when tickets were worth 13I. he never flaked more than 7I. los. for a ticket before the drawing. But when the Duke of Grafton was the mlnifler of the finances, he brought into cilice with him, the gaming ideas of New- market—all or nothing was the plan, ten thoufand pounds to a man in high life would not re-eflablifh his affairs — but twenty thoufand was an object. Inflantly the old Lottery plans were ex- ploded — Two prizes of 20,oocl. each — and four of io,oool. (Inflead oi two) with an increafe of other capital prizes, and no return for a blank, was the new fcheme. The tickets were illued as ufual to fubfcri- bers to the loan for the year 1767, at ten M 3 246 EVERY MAN pounds, but they rofe at market to 1 2I. 1 8s. Each adventurer of a whole ticket was then firft fet to gaming for 12I. ]8s. (the price to which tickets rofe, before the drawing) inftead of 6 or 7 guinea?. This firft Lot- tery in which the whole fum paid for a ticket by the adventurer was rifked, was voted by parliament on the i6th of April, 1767, and on the i6th of September fol- lowing, Lord North was appointed chan- cellor of the Exchequer : his lordfhip therefore is not the father of this new plan, bat he has miade it his adopted child. For the very next year, the fame fcheme was made part of the ways and means of miHng the fupply. A!i his Lordfhip's Lotteries fince, have followed the fame outline, with fome variations, which fa- vour the holders of tickets and the Lot- tery-office keepers, and expand the fpirit of gaming : fuch are the making the firfl: drawn ticket every day for feventeen days a capital prize of loool. or more, which en- hances the price of tickers, and encourages HI^ OWN BROKER. 247 perfons who have drav/n blanks to buy in again. But in return for this, he has efta- blifhed wife regulations for fecuring adven- turers who buy fliares under the regulations of the adt of parliament, which obliges all lottery-ofHce keepers to depofit the tickets they divide into fhares in the Bank, and to have the faid Hiares examined and ftampt, by the proper officers there. None but the ufual divilions of tickets into Halves^ Quarters ^ Eighths, and Sixteenths, (which have been in practice upwards of fift/ years) are fubjedt to the regulations of the adt of parliament. All other fubdivifions, or chances, by whatever name they may be defcribed, are neither proteded nor fecured by law. They depend entirely upon the honour of the office-keeper, for there is no law to oblige him to pay the prizes, according to the promifes he publifhes. Befides^ every perfon who games in a Lottery, fhould do it upon the principles of the fmalleft rifk, and the greateft profped of M 4 h8 every man gain. By purchafing the regular Ihares of a ticket, thefe principles are obferved ; but in purchafing unfecured, illegal chances and policies, the greateft rifk is run, for the fmallell profped: of gain. It is needlefs to enter into arithme- tical calculations to Ihevv the fallacy of all thofe fchemes : inftead of perplexing the reader with them, I Ihall fubjoin ab- flrafe from the adt of parliament conftl- tuting the Lottery for the prefent year, by which it will be apparent to every common capacity, that the fale of any other Ihares, befides thofe authorifed by the faid adt, is illegal, and of courfe, that the adventurer cannot recover his money from the office- keeper, (hould he think proper to refufe payment of any prize, fmall or capital. Sect, 39. ** No perfon iliall fell the chance, or chances of any ticket, or any Ihare for any time lefs than the whole time of drawing from the day of fale. '* Nor (hail receive any fum of money whatfoever, in confideration for the repay- HIS OWN BROKER. 249 ment of any fum, in cafe any ticket Ihall prove fortunate, or in cafe of any chance or event relating to the drawing, either as to time, or its being fortunate. Nor Ihall publifli propofals for the fame, under the penalty of 5001. one half to be paid to the perfon fuing for the fame, the' other moiety to his majefly.** Sedt. 47. Confirms the fame, and the fhares into which tickets may be divided are confined by the adt to Halves, Quar- ters, Eighths, and Sixteenths ; fuch, and iVich only will be examined to prevent the miflakes of office-keepers or their clerks, in making them out, and being compared with the original tickets, are ftampt, and the tickets depofited in the Bank for the fecurity of adventurers purchafing fucli fhares. Sedt. 56. " Office-keepers felling chances or fhares not flampr, are fubjedt to a penalty of 50I. one third to be paid to the informer, another third to the poor M s 25® EVERY MAN of the parifl), and the remainder to his majefty." Policies or chances therefore cannot b€ fianipr, and thofe who purchafe them game Hiegally, extravagantly, and under the greateft rifk of not beii^g paid the prizes they may draw. HIS OWN BROKER. 251 SUPPl^EMENT. Rules for judging of the Rife and Fall of the Prices of the public Funds ^ founded on rational Rriri' ciples ; the Refult af clofe Application to the Su5^ jecl. Taken from the Elements of Finances,. *' TT is too late to wafle our time in X fpecuhtive enquiries, concerning. the good or bad policy of naturalizing the fyiiem of public credit, now arrived to fuch perfeclion in England. Efta- bliflied as it is, and its national utility having been fo long experienced, it ig become the unqueftionable duty and in- tereft of every man of property in the. kingdom to fupport it. He therefore, who undermines it, in the fmallefl: degree,, by artifice or fraud of any kind, fhould be confidered as an enemy to the welfare. of his country. M 6 ^52 EVERY MAN " Lei thofe jobbers then^ who contrive to fink the value of the funded property of the kingdom, by cunning devices, be confidered as bandittis of thieves, who live upon the booty they acquire, by plunder- ing thofe^ whofe private occafions oblige them to carry their funds to market, of part of their property : and that you may be enabled to form a juft opinion of the fiu-fluatlons in the funds, and to difcover when thefe public robbers are at work, I will ftate the principal caufes which alone ought to operate any real diminution of the market price at any given time whatever. If no fuch caufes fubfift, be on your guard, and let nothing but extreme necef- iity induce you to fell ; for you may be alTured the bears are lying in wait, to devour your fub fiance. *^ I Ihall divide the chief caufes which naturally contribute to lower the price of the funds, into two clafTes ; thofe which happen in times of war ; and thofe which occur in times of peace. HIS OWN BROKER. 253 " With refpedt to the firfl, It has al- ready been noticed, that in proportion as the demands of government increafe, the interefl of money will rife ; and Indivi- duals, from a profpedl of employing their money more advantageoufly in new loans, will fell out of the old funds, efpeclally thofe which bear the lowed intereft. This will happen as early as poffible, becaufe the advantage will be the greater ; therefore, fpeculators will croud to market as foon as they have intelligence of a rupture with any confiderable foreign power, that they may fell before the fall increafes. The dif- ficulty, therefore, will be, to diHinguifli between rumours of war, and the adtual approach of this national calamity ; and there can be no furer guide in this cafe, than an impartial fcrutiny into the political fituation of our country ; the ftate of its commerce, and of its revenues ; the cha- radter of its prince, and his minifters, compared with the fame circumflances in the nation with whom a war is expedted. 254 EVERY MAN will, in a great meafure, determine what degree of credit we qught to give to rep jrrs of an unavoidable rupture. " In the difpute with Spain, about the feizure of Falkland's Ifland, I had the ho- nour to be confulted by feveral gentlemea of rank and fortune (fome of them foreign- ers) who vvere not in the channel of court intelligence ; and I ventured to aflure them, that, confidering the polirical cir- cumflances of the nation, the objecl: of the negociation was not of confequence fufii- cient to involve us in war; and though 1 readily allowed, that to take off the rudder of. a king's (hip, was almoft as great an in- dignity as to flrike the monarch, or his ambaffador, a blow on the face, yet I de- monHrated, to their latisfadiion, that we were not in a condition to go to war for points of honour, or fokly to gratify na- tional refentment. The fame fentiments I repeated publicly in my ledures; and I had the fatisfaCtion to diff.iade ieveral oF HIS OWN BROKER. 255 my friends from felling out of the funds upon that occafion. *' If the events of war are unfuccefsful, and we lofe valuable fettlements abroad, the funds will fall, from a concurrence of fellers, many of them merchants, who de- pended on remittances from the conquered places, and for want of them are obliged to part with their funded property. The apprchenfion of n;5nre misfortunes will likewife engage oihe-s in the fame mea- fure. " Powerful alliances formed againfl the interelt of the kingdom, having a ten- dency to endanger its political exiftence as an Independent flate, will aifect the funds ; for the public defence mufl re- quire unufual fupplies ; which increafmg the value of money, by the great demand for it, will lower the price of the old funds. " But an acflual invafion of a foreign enemy is the mofl to be dreaded. For the univerfal panic that fuch an event would 2s6 EVERY MAN occafion, no adequate remedy can be pre- fcribed ; becaufe men will naturally make ufe of the liberty this free country gives them, and withdraw their perfons and pro- j^erty, with the utmofl expedition, from the feat of war. The value of the funds, in this cafe, might fink near fifty per cent, in a few days, owing to the vafl concourfe of fellers ; and probably nothing would prevent a total celTation of the market for them, from the want of purchafers, but the patience, fortitude, and difcernment, of a few opulent individuals, who would take this opportunity to buy, actuated chiefly by the hopes of great gain, and, in Ibme meafure, by jufl refled:ions on the uncertain iffues of war; the florm may fub- iide; and public tranquillity being reftored, the funds will recover their full value : be- sides, as members of the community, we mufl fubmit to its fatalities. — If we have .patience, fome would fay, and do not part with our property in the funds, the ilate of affairs may alter^ and we fhall not be lofers : HIS OWN BROKER. 257 others might refledlthat, at fuch a crifis, if they had near and dear conne<£tions which prevented them from leaving the kingdom, they would be fubjed: to the fame inconve- niences with caih by them, if not more than if they remained proprietors of the funds ; for in the time of the great civil war, men were obliged to bury their money and plate, and they generally palled to other poflelTors : the families which con- cealed them, being torn from the place by the H^tld of violence; or the perfon actually depoiiting them, taken off by death. The hiftory of every country, where foreign conquefl, ar inteftine commotions have produced temporary revolutions, furnifhes inftances of treafures concealed, loft, and fometimes not difcovered for ages after thefe e\^ents. " Nor would the pofleflbrS of land be in a better fituation than the proprietors of our funds, in cafe of a revolution from either foreign or domeftic caufes ; it being well known, that landed ellates are aU 25S EVERY MAN ways bellowed as rewards on the victorious chiefs. " I am, therefore, clearly of opinion that, even in times of public diflrefs, ihonld every thins; feem to threaten a dif- folution of government, funded property is the lafl to be parted with. ^' I know of no events, in the courfe of human affairs, beiides thofe already men- tioned, which ought to affedl the value of the funds in times of war, fo, as to lower the current price confiderably. But fev-eral circum [lances may contribute to advance it ; fuch as fignal fuccefles, the return of great treafures taken from the enemy, and the approach of peace. The two firfl, however, are only to be confidered as ad- ventitious events ; a reverfe of fortune, or an extra-demand for money, may, in a few months, reduce the enhanced value : but the laft, is a fufficient caufe for a gra- dual rife, in proportion as the value of money diminiflies, from the great demand for it ceafing. 'HIS OWN BROKER. 259 ** Let me now flate the principal cir- cumftances which ought to have any con- iiderable influence on the funds in time of peace; and give me leave to premife, that when the nation enjoys perfect tran- quillity, when there is no fudden large demand for money, nor any confiderable fums in fpecie poured into the kingdom, no variation beyond two per cent, in the price of the funds ought to take place; if it does, independent of the following caufes, be affured it is artificial, and a trick of the alley. ^« Orders from foreigners to veft very confiderable fums In the funds, at any Hated time. *^ The return of great wealth, derived from our Afiatic commerce and territorial jurifdidlion ; or of immenfe fortunes ac- quired by individuals, in the adminii^ra- tion of the Company's affairs in India, *^ A fleady, judicious, uncorrupt, and ccconomical adminiftration of the revenues of the kingdom ; a general good under- a6a EVERY MAN flanding between every branch of govern- menc and the people; with a profpcdt of •the duration of peace, and of fuch a mi- ni dry, fo that the value of money muft fall daily : thefeare the chief events which iriaj^make the funds rife confiderably from the concourfe of purchafers, who will find no other channels open for employing their money, to equal advantage. ^yif'.The funds are equally liable to fink confiderably beneath the market price, if any of the follov/ing unhappy occur- rences difturb the peace and fecurity of the kingdom " The dangerous iilnefs, or fudden death,' of the reigning prince, " A difunion of any of the branches of the three eflates of the kingdom* " The advancement, to the highefi: oflices in the ftate, of men of weak minds, corrupt hearts, and debauched manners. ' *' A general miftruH and want of mutual confidence between adminiftration and the public at large ; caufing mutual complaints HIS OWN BROKER. 261 and reproaches, and engendering parties and divifions, which tend to tumults, popular infurredtions, and civil wars. ^' A ftagnation, or confiderable failure of private credit; and earthquakes, inun-- dations, or fires deflroying any part of our commercial fettlemenis,by which our mer- chants at home are fo diftreffed for want of remittances, that they are obliged to part with their property in the funds, to fupply the defefts. '« Laftly, a dearth of provifions, or the plague ; both of which would caufe confi- derable migrations of independent people of property. " If any other contingent public cala- mities fhould hereafter occur to the minds of any future proprietors of the funds, let them ufe their own difcretion in applying them : at prefent, I fhall only lay down one general rule for the condudt of thofe who are, and of thofe who may be dif- pofed to become, proprietors in the funds. 26t EVERY MAN '' Watch attentively the real value of money ; I mean, what intercft it will bear on the belt landed fccurity in the king- dom : and if you find, by examining the table annexed, and comparing it with the prices of the feveral funds publilhed daily, that moft of the faid funds are rsther under the par of the general rate of intereil'-, let thofe who have proj^erty veftcd in them, avoid felling out, and thofe who wifli to purchafe, lofe nj time. " In a word, 1 cannot too flrongly cau- tion my fellow citizens againfl idle ru- mours on the itate of public aff-iirs at home or abroad, nor too otten enforce this obfervation : ^^ That the jobbing brokers, ''*■ Needy people will always offer premiunis in proportion to their diitrels ; therefore, mortgages m:iy be had at five per ccnr. uhen money is worth only four. But we are to rcafon upon calcuJations of general contracts, made in the oper. market for very large funis. ^1 T^ t /?!/ €' t€3% f 66 -^a 1 7. 58 k 6o 68^ 70- 7 8 6/^ 63 7/t 73^ 8 8 64-^^ 66 75X 77 8. 8. fi7^ 78t o ^4. Tabi.£ of EqirjiTIo^ rV^J^feW J,ur- cAaje./OOZ.m diU^l4fi>/ ^a^J /^'a/-BANK STOCK /r/i. fir // ^, ^o fynoa^ /Am, Uf&K' t/n t/i^ fii^ ^Uf^mn .c/mtftfrtitta /A* 3Jur C>nl> f, S7. a^^/Aen, m Co/Sim^ff ofde ,,am4'/,aJ>aa-/ ^« ^ ■■'Aeiej^cu a/i/lfirij ma/^3/ur fm/j /iiiuAM)SatS7/m)e/jin- S.S.3